Leases (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Supplemental Balance Sheet Information Related to Leases

As of June 30, 2022, the Company does not believe that any of the renewal options under the existing leases are reasonably certain to be exercised; however, the Company will continue to assess and monitor the lease renewal options on an ongoing basis.

	As of June 30, 2022		As of December 31, 2021
Assets
Lease right-of-use assets	$	2,551,000	$	2,662,000
Liabilities
Lease liabilities	$	2,773,000	$	2,933,000

Schedule of Additional Information Related to Leases

The calculated amounts of the lease right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company leases some miscellaneous office equipment, but they are immaterial and therefore the Company records the costs associated with this office equipment on the statements of operations rather than capitalizing them as lease right-of-use assets. The Company determined a discount rate of 5.0% would approximate the Company’s cost to obtain financing given its size, growth, and risk profile.

Lease Term and Discount Rate

As of

June 30, 2022

As of

December 31, 2021

Weighted average remaining lease term – operating leases (in years)

3.1

2.9

Weighted average discount rate – operating leases

5.0

Schedule of Lease Costs and Other Lease Information

The following table represents lease costs and other lease information. The Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities which are usually determined by the leased square footage in proportion to the overall office building.

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	347,000	$	410,000	$	726,000	$	898,000
Short-term lease cost		52,000		23,000		77,000		44,000
Variable lease cost		57,000		37,000		126,000		98,000
Total Rent and occupancy	$	456,000	$	470,000	$	929,000	$	1,040,000

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	375,000	$	338,000	$	775,000	$	894,000

Lease right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	602,000	$	487,000	$	602,000	$	1,875,000

Schedule of Future Minimum Base Rental Payment

Future annual minimum payments for operating leases with initial terms of greater than one year as of June 30, 2022 were as follows:

Year	Amount
2022	$	623,000
2023		1,092,000
2024		543,000
2025		450,000
2026		234,000
2027		48,000
Remaining balance of lease payments		2,990,000
Less: difference between undiscounted cash flows and discounted cash flows		217,000
Lease liabilities	$	2,773,000