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Operating Lease
 6 Months Ended
Jun. 30, 2022
Operating Lease  
Operating Lease

 

  4. Operating Lease

 

The Company leases certain corporate office space under an operating lease agreement. We determine if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in lease arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments.

 

The components of lease expense and supplemental cash flow information related to leases are as follows: 

    
   June 30, 
   2022 
     
Lease costs:     
Operating lease (included in general and administrative in the Company’s consolidated statement of operations)  $20,000 
      
Other information:     
Cash paid for amounts included in the measurement of lease liabilities  $16,000 
      
Weighted average remaining lease term – operating leases (in years)   2.9 
Average discount rate – operating leases   4% 
      
The supplemental balance sheet information related to leases for the period is as follows:     
Long-term right-of-use assets  $126,000 
      
Short-term operating lease liabilities   39,000 
Long-term operating lease liabilities   89,000 
Total operating lease liabilities  $128,000