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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Litigation

We are involved in claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and LAE during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation.

At June 30, 2022, the Company is involved in legal proceedings whereby on August 18, 2021, a former employee of Skyway Legal Services, LLC, filed a complaint against the Company in the United States District Court for the District of Delaware. The lawsuit alleges violations of and damages arising under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967, and seeks damages in an unspecified amount. The Company, a named party to the lawsuit, denies that it employed the plaintiff and disputes the claims set forth in the lawsuit. The Company believes that an unfavorable outcome is neither probable nor estimable.

In addition, on January 13, 2022, Southern Florida Restoration (SFR) Services, LLC v. United Property and Casualty Insurance Company, et al. was filed in the United States District Court for the Middle District of Florida. The District Court dismissed the lawsuit on its own accord on January 14, 2022. SFR Services then filed an amended complaint on January 26, 2022. The complaint alleges four causes of action: (i) violation of the Federal Civil Racketeer Influenced and Corrupt Organizations statute (18 U.S.C. § 1962(c)), (ii) breach of contract, (iii) fraud, and (iv) violation of the Florida Unfair Insurance Trade Practices Act (Fla. Stat. Chpt. 626). The plaintiff seeks unspecified damages. The Company believes that an unfavorable outcome is neither probable nor estimable. The defendants moved to dismiss the lawsuit on March 25, 2022 and their motion remains pending.

Commitments to fund partnership investments

We have fully funded three limited partnership investments and have committed to fund our remaining six limited partnership investments. The amount of unfunded commitments was $6,785,000 and $1,969,000 at June 30, 2022 and December 31, 2021, respectively.
Leases

We, as lessee, have entered into leases of commercial office space of various term lengths. In addition to office space, we lease office equipment and a parking lot under operating leases and vehicles under finance leases.

The classification of operating and finance lease asset and liability balances within the Unaudited Condensed Consolidated Balance Sheets was as follows:
Financial Statement LineJune 30, 2022December 31, 2021
Assets
Operating lease assets
Other assets$1,398 $1,689 
Financing lease assets
Property and equipment, net264 477 
Total lease assets
$1,662 $2,166 
Liabilities
Operating lease liabilities
Operating lease liability$1,600 $1,934 
Financing lease liabilities
Other liabilities8 16 
Total lease liabilities
$1,608 $1,950 

The components of lease expenses were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Operating lease expense$160 $166 $320 $331 
Financing lease expense:
Amortization of leased assets
113 196 242 391 
Interest on lease liabilities
1 — 1 — 
Net lease expense$274 $362 $563 $722 

At June 30, 2022, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows:
Operating LeasesFinance LeasesTotal
Remaining in 2022$319 $6 $325 
2023619 4 623 
2024602 — 602 
2025257 — 257 
202632 — 32 
Thereafter1,160 — 1,160 
Total undiscounted future minimum lease payments
2,989 10 2,999 
Less: Imputed interest(1,389)(2)(1,391)
Present value of lease liabilities
$1,600 $8 $1,608 
Weighted average remaining lease term and discount rate related to operating and finance leases were as follows:
June 30, 2022December 31, 2021
Weighted average remaining lease term (months)
Operating leases
43 51 
Financing leases
14 17 
Weighted average discount rate
Operating leases
3.64 %3.61 %
Financing leases
3.27 %3.27 %


Other cash and non-cash related activities were as follows:

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Cash paid for amounts included in the measurement of lease liabilities
Investing cash flows from financing leases$— $33 $— $33 
Right-of-use assets obtained in exchange for new financing lease liabilities— 33 — 33 

Capital lease amortization expenses are included in depreciation expense in our Unaudited Condensed Consolidated Statements of Comprehensive Loss. See Note 6 of these Notes to Unaudited Condensed Consolidated Financial Statements for more information regarding depreciation expense, Note 10 for information regarding commitments related to long-term debt, and Note 13 for information regarding commitments related to regulatory actions.

Employee Retention Credit

A series of legislation was enacted in the United States during 2020 and 2021 in response to the COVID-19 pandemic that provided financial relief for businesses impacted by government-mandated shutdowns, work stoppages, or other losses suffered by employers. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided an employee retention credit, which is a refundable tax credit against certain employment taxes of up to $5,000 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10,000 of qualified wages per employee. During the second quarter of 2022, we evaluated our eligibility and filed for a $10,161,000 refund in connection with our Employee Retention Tax Credit for the tax year ended December 31, 2021. As of June 30, 2022, we have not received a refund or response from the Internal Revenue Service regarding this refund. A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. We have not recorded the recognition of this gain contingency prior to settlement of the underlying event. We will continue to monitor the matter for further developments that could affect the outcome and will make any appropriate adjustments each quarter.