Leases

12 Months Ended

Dec. 31, 2023

5. Leases

We currently lease office space under operating leases in Christiansted, St. Croix, U.S. Virgin Islands and Bengaluru, India. Prior to the termination of the lease in October 2023, we also leased space in Tampa, Florida.

As of December 31, 2023 and 2022, our weighted average remaining lease term, including applicable extensions, was 3.3 years and 3.8 years, respectively, and we applied a discount rate of 7.0% and 7.0%, respectively, to our office leases. We determined the discount rate for each lease to be either the discount rate stated in the lease agreement or our estimated rate that we would charge to finance real estate assets.

During the years ended December 31, 2023 and 2022, we recognized rent expense of $0.4 million and $0.3 million, respectively, related to long-term operating leases. We had no short-term rent expense for the years ended 2023 or 2022. We include rent expense as a component of general and administrative expenses in the Consolidated Statements of Operations. We had no finance leases during the years ended December 31, 2023 and December 31, 2022.

The following table presents a maturity analysis of our operating leases as of December 31, 2023 ($ in thousands):


	Operating Lease Liabilities
2024	$	300
2025	309
2026	320
2027	76


Total lease payments	1,005
Less: interest	105
Lease liabilities	$	900

Right-of-use assets are periodically reviewed for impairment losses under ASC 360-10, “Property, plant, and equipment,” to determine whether a right-of-use asset is impaired, and if so, the amount of impairment loss to recognize. During the year ended December 31, 2023, we ceased utilizing office space in Tampa, Florida as part of our assessment of overall costs of the mortgage platform and recognized an impairment of the remaining right-of-use asset for the space of $58,000. We did not recognize any impairments of right-of-use assets for the year ended December 31, 2022.