Operating Leases

9 Months Ended

Sep. 30, 2024

The Company has an operating lease for one office which expires in 2025. The Company estimates its incremental borrowing rate at lease commencement to determine the present value of lease payments as most of the Company's leases do not provide an implicit rate of return. The Company recognizes lease expense on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of ASU No. 2016-02, Leases (Topic 842), the Company elected to account for non-lease components associated with its leases and lease components as a single lease component. The Company's lease includes an option for the Company to extend the lease term and/or sub-lease space in whole or in part.

Operating lease liabilities and right-of-use assets were recorded in the following captions of our balance sheet as follows (in thousands):


	September 30, 2024		December 31, 2023
Right-of-Use Assets:
Other assets	$	182	$	308
Total Right-of-Use Asset	$	182	$	308

Operating Lease Liabilities:
Accrued liabilities	$	181	$	168
Other long-term liabilities	—		137
Total Operating Lease Liabilities	$	181	$	305

As of September 30, 2024, the weighted average remaining lease term for our operating lease was 1.00 year, and the weighted average discount rate for our operating lease was 9.625%. As of December 31, 2023, the weighted average remaining lease term for our operating leases was 1.75 years, and the weighted average discount rate for our operating leases was 9.625%.

Future minimum lease payments under the lease agreement as of September 30, 2024 were as follows (in thousands):


Years ended	Operating Leases




2024	48
2025	143
Total lease payments	191
Less: Amounts representing interest	(10)
Present value of lease liabilities	$	181