The Company has entered into a lease agreement for real estate that is used for office space in the ordinary course of business. The lease is accounted for as an operating lease, whereby the lease expense is recognized on a straight-line basis over the term of the lease.

The lease includes an option to extend or renew the lease term. The exercise of the renewal option is at the Company’s discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. Such options relating to the extension or renewal of the lease term are not included in the operating lease liability at this time.

Lease expense is included in “general and administrative expenses” in the Company’s consolidated statements of net income (loss). Additional information regarding the Company’s real estate operating lease is as follows.



	Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	($ in thousands)
Lease cost:
Operating lease	$	62		$	124
Other information on operating lease:
Cash payments included in the measurement of lease liability reported in operating cash flows	71			142
Right-of-use assets (1)	845			845
Operating lease liability (2)	845			845
Weighted average discount rate	3.9		%	3.9		%
Weighted average remaining lease term in years	3.25 years			3.25 years

(1) Included in “other assets” on the Company’s consolidated balance sheet.

(2) Included in “other liabilities” on the Company’s consolidated balance sheet.

The following tables present the contractual maturity of the Company’s lease liability:



	June 30, 2020
	($ in thousands)
Remainder of 2020	142
2021	283
2022	283
2023	189
Total undiscounted lease payments	897
Less: present value adjustment	(52	)
Operating lease liability	845