Leases

9 Months Ended

Sep. 30, 2023

Note 12 Leases

In December 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 door to its other leased property in Los Angeles, California, detailed below. The lease term is five years subject to early termination by either party, beginning November 2018 and ending October 2023. The current monthly lease payment is $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. The current monthly lease payment is $0.02 million, subject to an annual escalation of 5%.

All leases were classified as operating and operating lease expenses are presented within Other operating expenses in the unaudited 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 (in thousands):


	For the Nine Months Ended
	9/30/2023		9/30/2022
Operating lease cost	$	247	$	2,058
Short-term lease cost		8		26
Total lease cost	$	255	$	2,084


	For the Nine Months Ended
	9/30/2023			9/30/2022
Other information:
Cash paid for operating leases	$	263		$	1,457
Weighted-average remaining lease term - operating lease		2.23			3.08
Weighted-average discount rate - operating lease		10	%		10	%

The future minimum lease payments as of September 30, 2023, were as follows (in thousands):


Year	Related-Party Commitment
2023 (remaining)	$	76
2024		295
2025		310
Thereafter		-
Total minimum lease payments	$	681
Less: imputed interest		(69	)
Total lease liabilities	$	612