Lease Commitments

3 Months Ended

Mar. 31, 2023

5. Lease Commitments

As of March 31, 2023, the Company had operating leases for office space in both Buffalo Grove, Illinois and Florham Park, New Jersey, with remaining lease terms of 2.1 years and 2.4 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 three months ended March 31, 2023 and 2022 was $0.3 million and $0.2 million, respectively.

The following table summarizes supplemental balance sheet information related to the operating leases (in thousands):


	March 31,		December 31,
	2023		2022
Assets:
Operating lease right-of-use assets	$	2,088	$	2,287
Total right-of-use assets		2,088		2,287

Liabilities:
Operating lease liabilities, current		712		708
Operating lease liabilities, non-current		945		1,098
Total operating lease liabilities	$	1,657	$	1,806

As of March 31, 2023, the future minimum annual lease payments under the operating leases were as follows (in thousands):


2023		552
2024		753
2025		513
Total minimum lease payments		1,818
Less: amount representing interest		(161	)
Present value of operating lease liabilities		1,657
Less: operating lease liabilities, current		(712	)
Operating lease liabilities	$	945

Weighted-average remaining lease term (in years)		2.3
Weighted-average incremental borrowing rate		8.20	%

Operating cash flows for the three months ended March 31, 2023 and 2022 included cash payments for operating leases of approximately $0.2 million and $0.1 million, respectively.