Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

10. Leases

As of March 31, 2023, all of the Company’s leases are classified as operating and primarily consist of office space leases expiring in 2023 through 2027. The Company elected not to include short-term leases (i.e., leases with initial terms of less than twelve months), or equipment leases (deemed immaterial) on the statements of financial condition. 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 balance of the lease right-of-use assets and lease liabilities are displayed on the statements of financial condition and the below tables display further detail on the Company’s leases.

Lease Term and Discount Rate	As of March 31, 2023			As of December 31, 2022
Weighted average remaining lease term – operating leases (in years)		2.6			2.7
Weighted average discount rate – operating leases		5.0	%		5.0	%

	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	304,000	$	378,000
Short-term lease cost		143,000		25,000
Variable lease cost		31,000		70,000
Total Rent and occupancy	$	478,000	$	473,000
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	326,000	$	400,000
Lease right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	—	$	—

Lease Commitments

Future annual minimum payments for operating leases with initial terms of greater than one year as of March 31, 2023 were as follows:

Year	Amount
2023	$	920,000
2024		588,000
2025		450,000
2026		234,000
2027		48,000
Remaining balance of lease payments		2,240,000
Less: difference between undiscounted cash flows and discounted cash flows		135,000
Lease liabilities	$	2,105,000