Lease Commitments

12 Months Ended

Dec. 31, 2022

5. Lease Commitments

As of December 31, 2022, the Company had operating leases for office space in both Buffalo Grove, Illinois and Florham Park, New Jersey, with weighted average remaining lease terms of 2.3 years and 2.7 years, respectively. All operating leases contain an option to extend the term for one additional five-year period, which was not considered in the determination of the right-of-use asset or lease liability as the Company did not consider it reasonably certain that it would exercise such options.

The total rent expense for the years ended December 31, 2022 and 2021 was approximately $1.0 million and $0.7 million, respectively.

The following table summarizes supplemental balance sheet information related to the operating leases as of December 31, 2022:


	December 31,
	2022		2021
Assets:
Operating lease right-of-use assets	$	2,287	$	1,914
Total right-of-use assets		2,287		1,914

Liabilities:
Operating lease liabilities, current		708		487
Operating lease liabilities, non-current		1,098		1,183
Total operating lease liabilities	$	1,806	$	1,670

As of December 31, 2022, the future minimum annual lease payments under the operating leases were as follows (in thousands):


2023		734
2024		753
2025		513
Total minimum lease payments		2,000
Less: amount representing interest		(194	)
Present value of operating lease liabilities		1,806
Less: operating lease liabilities, current		(708	)
Operating lease liabilities	$	1,098

Weighted-average remaining lease term (in years)		2.6
Weighted-average incremental borrowing rate		8.20	%

Operating cash flows for the years ended December 31, 2022 included $1.1 million in cash payments for operating leases, none of which were prepaid lease payments. Operating cash flows for the years ended December 31, 2021 included $0.7 million in cash payments for operating leases, $0.1 million of which were prepaid lease payments.