Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

Note 14. Leases

BTI leases office space for its corporate headquarters at 555 Long Wharf Drive, New Haven, Connecticut (the “HQ Lease”) under an operating lease. The HQ Lease was effective in February 2019, was subject to an amendment for additional office space in August 2020 and expires in February 2026. The Company has an option to renew the HQ Lease for one additional five-year term at 95% of the then-prevailing market rates but not less than the rental rate at the end of the initial lease term. Payments under the HQ Lease are fixed.

The Company also leases equipment such as copiers and information technology equipment.

The future minimum annual lease payments under operating leases, as of September 30, 2022, are as follows:

Year ending December 31,	Amount
Remainder of 2022	$	91
2023		372
2024		381
2025		391
2026		65
Thereafter		—
Total lease payments	$	1,300
Less imputed interest		(120)
Total lease liability	$	1,180
Less current portion of lease liability		(312)
Long-term portion of operating lease liability	$	868

The current portion of the Company’s operating lease liability of $312, as of September 30, 2022, is included in other current liabilities on the Condensed Consolidated Balance Sheets.

Lease expense was $114 and $85 for the three months ended September 30, 2022, and 2021, respectively, and $318 and $280 for the nine months ended September 30, 2022, and 2021, respectively.

Lease renewal options are not included in the ROU asset or lease liability.