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

For the three months ended June 30, 2022 and 2021 we recorded approximately $217,000 and $158,000, respectively, of fixed cost operating lease expense. For the six months ended June 30, 2022 and 2021, we recorded approximately $462,000 and $317,000, respectively, 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 six months ended June 30, 2022 was approximately $26,000.

Cash paid for operating leases approximated operating lease expense and non-cash right of use asset amortization for the six months ended June 30, 2022 and 2021. We did not obtain any new operating lease right-of-use assets in the six months ended June 30, 2022.

The future minimum lease payments required under our office leases as of June 30, 2022 are as follows:


	Amount
2022	$	366,251
2023		240,171
2024		210,560
2025		123,586
2026		85,044
Total lease payments		1,025,612
Less: Interest		(107,500	)
Present value of lease liabilities	$	918,112

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 June 30, 2022 are de minimis.


	June 30,		December 31,
	2022		2021
Operating Leases:	(Unaudited)
Right-of-use operating lease asset:
Property and equipment, net and other assets	$	1,028,384	$	1,945,438

Lease Liabilities:
Accounts payable and accrued liabilities	$	440,065	$	868,799
Other long-term liabilities		478,047		1,123,799
Total operating lease liabilities	$	918,112	$	1,992,598