Lease Commitments

3 Months Ended

Mar. 31, 2021

5. Lease Commitments

As of March 31, 2021, the Company had operating leases for office space in both Buffalo Grove, Illinois and Florham Park, New Jersey, with remaining lease terms of 4.1 years and 4.4 years, respectively. Both 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, 2021 and 2020 was approximately $0.2 million and $0.1 million, respectively.

The following table summarizes supplemental balance sheet information related to the operating leases as of March 31, 2021 and December 31, 2020.

	March 31,		December 31,
	2021		2020
Assets:
Operating lease right-of-use assets		2,261		2,373
Total right-of-use assets	$	2,261	$	2,373

Liabilities:
Operating lease liabilities, current		477		474
Operating lease liabilities, non-current		1,467		1,557
Total operating lease liabilities	$	1,944	$	2,031

As of March 31, 2021, the future minimum annual lease payments under the operating leases were as follows (in thousands):

2021	$	368
2022		503
2023		516
2024		529
Thereafter		342
Total minimum lease payments	$	2,258

Less: amount representing interest		(314	)
Present value of operating lease liabilities		1,944
Less: operating lease liabilities, current		(477	)
Operating lease liabilities	$	1,467

Weighted-average remaining lease term (in years)		4.31
Weighted-average incremental borrowing rate		7.25	%

Operating cash flows for the three months ended March 31, 2021 included $0.2 million in cash payments for operating leases. Operating cash flows for the three months ended March 31, 2020 included $0.3 million in cash payments for operating leases, $0.2 million of which were prepaid lease payments.