Leases

6 Months Ended

Jun. 30, 2022

Note

Leases

In November 2018, the Company entered into a sublease agreement with PCJW Properties LLC (“PCJW”), controlled by Company’s founders (including the Company’s current CEO), for general office space next to the aforementioned leased property in Los Angeles, California. The lease term is five years subject to early termination by either party. Under the terms of the sublease, monthly rent is approximately $0.006 million, subject to an annual escalation of 4%.

In January 2019, the Company entered into a lease agreement with PCJW for office space located in Los Angeles, California. The lease term is seven years, beginning January 1, 2019 and ending December 31, 2025. Monthly rent is approximately $0.02 million, subject to an annual escalation of 5%.

In May 2020, the Company entered into a sublease with Whalerock for general office space in West Hollywood, California. Under the terms of the sublease, the lease term is approximately 18 months and the monthly rent is approximately $0.14 million. The Company began utilizing the office space in June 2021.

All leases were classified as operating and operating lease expenses are presented within other general and administrative expenses in the condensed consolidated statements of operations. The Company does not have any finance leases or sublease arrangements where the Company is the sublessor. The Company’s leasing activities are as follows (dollars in thousands)


	For the Six Months Ended
	June 30, 2022			June 30, 2021
Operating lease cost	$	1,006		$	343
Short-term lease cost		8			—
Variable lease cost		—			—

Total lease cost	$	1,014		$	343


	For the Six Months Ended
	June 30, 2022			June 30, 2021
Other information:
Cash paid for operating leases	$	1,061		$	281
Right-of-use assets obtained in exchange for new operating lease liability	$	—		$	—
Weighted-average remaining lease term - operating lease		1.91			2.38
Weighted-average discount rate - operating lease		10	%		10	%

The future minimum lease payments as of June 30, 2022, were as follows (in thousands):


Year	Third-Party Commitment			Related-Party Commitment			Total
2022 (remaining)	$	885		$	168		$	1,053
2023		148			339			487
2024		—			295			295
2025		—			309			309
Thereafter		—			—			—

Total minimum lease payments	$	1,033		$	1,111		$	2,144

Less: imputed interest		(25	)		(165	)		(190	)

Total lease liabilities	$	1,008		$	946		$	1,954