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Leases | 6 Months Ended
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Jun. 30, 2022
Leases [Abstract] |
Leases | 7. Leases As of June 30, 2022, the Company rents office space under operating leases expiring in 2022 through 2027, and the Company has no financing leases. The leases call for base rent plus escalations as well as other operating expenses. The following table represents the Company’s lease right-of-use assets and lease liabilities on the statements of financial condition. 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. -10- As of June 30, 2022, the Company does not believe that any of the renewal options under the existing leases are reasonably certain to be exercised; however, the Company will continue to assess and monitor the lease renewal options on an ongoing basis.
|  | As of June 30, 2022 |  | As of December 31, 2021
Assets |  |  |  |  |  |  |  |
Lease right-of-use assets |  | $ | 2,551,000 |  |  | $ | 2,662,000 |
Liabilities |  |  |  |  |  |  |  |
Lease liabilities |  | $ | 2,773,000 |  |  | $ | 2,933,000 |
The calculated amounts of the lease right-of-use assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. 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 Company determined a discount rate of 5.0% would approximate the Company’s cost to obtain financing given its size, growth, and risk profile.
Lease Term and Discount Rate |  | As of June 30, 2022 |  | As of December 31, 2021
Weighted average remaining lease term – operating leases (in years) |  |  | 3.1 |  |  |  | 2.9 |
Weighted average discount rate – operating leases |  |  | 5.0 | % |  |  | 5.0 | %
The following table represents lease costs and other lease information. The Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities which are usually determined by the leased square footage in proportion to the overall office building.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Operating lease cost |  | $ | 347,000 |  |  | $ | 410,000 |  |  | $ | 726,000 |  |  | $ | 898,000 |
Short-term lease cost |  |  | 52,000 |  |  |  | 23,000 |  |  |  | 77,000 |  |  |  | 44,000 |
Variable lease cost |  |  | 57,000 |  |  |  | 37,000 |  |  |  | 126,000 |  |  |  | 98,000 |
Total Rent and occupancy |  | $ | 456,000 |  |  | $ | 470,000 |  |  | $ | 929,000 |  |  | $ | 1,040,000 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 375,000 |  |  | $ | 338,000 |  |  | $ | 775,000 |  |  | $ | 894,000 |
Lease right-of-use assets obtained in exchange for new lease liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases |  | $ | 602,000 |  |  | $ | 487,000 |  |  | $ | 602,000 |  |  | $ | 1,875,000 |
Lease Commitments Future annual minimum payments for operating leases with initial terms of greater than one year as of June 30, 2022 were as follows:
Year |  | Amount |
2022 |  | $ | 623,000 |
2023 |  |  | 1,092,000 |
2024 |  |  | 543,000 |
2025 |  |  | 450,000 |
2026 |  |  | 234,000 |
2027 |  |  | 48,000 |
Remaining balance of lease payments |  |  | 2,990,000 |
Less: difference between undiscounted cash flows and discounted cash flows |  |  | 217,000 |
Lease liabilities |  | $ | 2,773,000 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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