Quarterly report pursuant to Section 13 or 15(d)

LEASES

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LEASES
9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
LEASES

NOTE 10 — LEASES

Operating leases — The Company leases its office space under operating leases with unrelated entities.

The Company leases 21,293 square feet of office space for our headquarters in Torrance, California, at a base rental of $80,886 per month, which lease will expire on September 30, 2026. The Company also leases an additional 1,850 square feet office space in New York, New York, at a base rent of $8,691, which lease will expire on January 31, 2023.

In addition, the Company leases 1,322 square feet of office space in Tokyo, Japan, which lease will expire on September 30, 2022 and 1,163 square feet of office space in Dubai, United Arab Emirates, which lease will expire on June 19, 2023.

The rent expense during the three months ended September 30, 2021 and 2020 amounted to approximately $300,000 and $286,000, respectively, and during the nine months ended September 30, 2021 and 2020 amounted to approximately $889,000 and $895,000, respectively.

Future minimum lease payments under the lease agreements were as follows as of September 30, 2021 (in thousands):

 

 

Amount

 

2021 (three months)

 

$

290

 

2022

 

 

1,174

 

2023

 

 

1,058

 

2024

 

 

1,063

 

2025 and thereafter

 

 

1,928

 

Total lease payments

 

 

5,513

 

Less: Interest

 

 

1,346

 

Present value of lease liabilities

 

$

4,167

 

As of September 30, 2021, the Company had an operating lease right-of-use asset of $3.6 million and lease liability of $4.2 million in the balance sheet. The weighted average remaining term of the Company’s leases as of September 30, 2021 was 4.8 years and the weighted-average discount rate was 11.6%.