Our leases are primarily related to office space and are classified as operating leases.

For the three months ended March 31, 2022, we recorded approximately $245,000 of fixed cost operating lease expense. For the three months ended March 31, 2021, we recorded approximately $158,000 of fixed cost operating lease expense. Our operating lease expense is offset by a minimum annual incentive received from a local Economic Development Council, which is accrued monthly and will continue over the term of the corporate office lease through August 2022. This minimum annual incentive is $93,600 effective September 2020 through the remainder of the lease term.

Effective December 1, 2019, we subleased a portion of our corporate office space to a single tenant. The sublease agreement is accounted for as an operating lease and we recognize sublease income as an offset to operating lease expense on a straight-line basis over the term of the sublease agreement through August 2022. Sublease income, net of amortized leasing costs, for the three months ended March 31, 2022 was approximately $13,000.

Cash paid for operating leases approximated operating lease expense and non-cash right of use asset amortization for the three months ended March 31, 2022 and 2021. We did not obtain any new operating lease right-of-use assets in the three months ended March 31, 2022.

The future minimum lease payments required under our office leases as of March 31, 2022 are as follows:


	Amount
2022	$	691,601
2023		470,366
2024		455,656
2025		310,354
Total lease payments		1,927,977
Less: Interest		(199,519	)
Present value of lease liabilities	$	1,728,458

The table below presents the lease related assets and liabilities recorded on the balance sheet. Right-of-use assets and related liabilities related to finance leases at March 31, 2022 are de minimis.


	March 31,		December 31,
	2022		2021
Operating Leases:	(Unaudited)
Right-of-use operating lease asset:
Property and equipment, net and other assets	$	1,703,764	$	1,945,438

Lease Liabilities:
Accounts payable and accrued liabilities	$	715,140	$	868,799
Other long-term liabilities		1,013,318		1,123,799
Total operating lease liabilities	$	1,728,458	$	1,992,598