Leases

9 Months Ended

Sep. 30, 2023

Note 10.

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 the nine months ended September 30, 2023 and September 30, 2022 was $761.

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

	Nine Months Ended September 30,
Other information on operating leases:	2023			2022
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	784		$	772
Right-of-use assets included in other assets on the condensed consolidated balance sheet		2,817			3,595
Weighted average discount rate		6.8	%		6.8	%
Weighted average remaining lease term in years	3.1 years			4.1 years

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

	Lease Liability
Remainder of 2023	$	264
2024		1,065
2025		1,083
2026		942
Thereafter		—
Total undiscounted lease payments		3,354
Less: present value adjustment		343
Operating lease liability included in accounts payable and accrued expenses on the condensed consolidated balance sheet	$	3,011

As of September 30, 2023, the Company has no operating leases that have not yet commenced.