We have entered into a lease for our corporate headquarters with a remaining lease term of 7 years. This lease includes both lease and non-lease components, which are accounted for as a single lease component as we have elected the practical expedient to combine these components for all leases. As the lease does not provide an implicit rate, we calculated the right-of-use assets and lease liabilities using our secured incremental borrowing rate at the lease commencement date. We currently do not have any finance leases outstanding.

As part of our continued cost savings initiative in response to negative future recurring cash flows, on November 29, 2023, the Company entered into a sublease agreement with a third party, effective April 1, 2024 through March 31, 2027, with an option to extend through the remainder of the lease term to November 2030. The sublease calls for annual base rent of $280 for the first year with increases of approximately 2.5% each year thereafter. This action caused us to assess the carrying value of our operating lease right-of-use asset compared to the undiscounted cash flows of the sublease and resulted in recording an impairment expense during the fourth quarter of 2023 in the amount of $858. The operating lease impairment charges reduce the carrying value of the associated right of use asset to the estimated fair value.

Information related to leases was as follows:


	Three Months Ended March 31,
	2024			2023
Operating lease information:
Operating lease cost	$	103		$	101
Operating cash flows from operating leases		103			100
Net assets obtained in exchange for new operating lease liabilities		-			-

Weighted average remaining lease term in years		6.67			7.67
Weighted average discount rate		5.1	%		5.1	%

Future minimum annual lease payments are as follows:

Future


Remainder of 2024	$	310
2025		420
2026		427
2027		434
2028		441
Thereafter		864
Total minimum lease payments	$	2,896
Less imputed interest		(456	)

Total operating lease liability	$	2,440