In April 2023, the Company entered into a ten-year agreement to sublease office space at One World Trade Center. However, based on the Company's past experience and current expectation for administrative office needs, the Company determined the lease term to be five years. As of June 30, 2023, the remaining lease term for the Company's operating lease was 4.8 years with a discount rate of 12.0%. The interest rate implicit in lease contracts is typically not readily determinable and as such, the Company uses its incremental borrowing rate based on the information available at the lease commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment. The lease at 22 Cortlandt Street expired in April 2023.

For the three and six months ended June 30, 2023 and 2022, the Company had the following operating lease expense:


		Three Months Ended June 30,				Six Months Ended June 30,
	Statement of Operations Location	2023		2022		2023		2022
Total operating lease expense	Selling, general and administrative	$	689	$	291		1,007		582

Future minimum lease payments of the Company’s operating leases as of June 30, 2023 were as follows:


2023	$	141
2024		720
2025		2,452
2026		2,521
2027		2,521
Thereafter		3,204
Total lease payments		11,559
Less imputed interest		(3,669	)
Present value of operating lease liabilities	$	7,890