Leases

12 Months Ended

Dec. 31, 2021

Note 9.

Leases

The Company has two operating lease agreements, each for the use of office space in the ordinary course of business. The first lease renews annually on an automatic basis and based on original assumptions, management is reasonably certain to exercise the renewal option through 2026. The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease expense reported for each of the years ended December 31, 2021 and 2020 was $1,014.

Additional information regarding the Company’s real estate operating leases is as follows:

	Year Ended December 31, 2021			Year Ended December 31, 2020
Other information on operating leases:
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	1,015			978
Right-of-use assets included in other assets on the consolidated balance sheet		4,143			4,832
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	4.9 years			5.9 years

The following table presents maturities and present value of the Company’s lease liabilities:

	Lease Liability
2022	$	1,031
2023		1,048
2024		1,065
2025		1,083
2026		942
Thereafter		—
Total undiscounted lease payments		5,169
Less: present value adjustment		791
Operating lease liability included in accounts payable and accrued expenses on the consolidated balance sheet	$	4,378

As of December 31, 2021, the Company has no operating leases that have not yet commenced.