NOTE 10—LEASES

Operating leases — During the years ended December 31, 2022 and 2021, the Company leased its office space under operating leases with unrelated entities.

The Company leased 21,293 square feet of office space for its headquarters in Torrance, California, at a base rental of $84,272 per month, which lease will expire on September 30, 2026. In addition, the Company leases 1,163 square feet of office space in Dubai, United Arb Emirates, which lease will expire on June 19, 2023. During the year ended December 31, 2022, the Company terminated leases of office space in New York, New York and Tokyo, Japan. Upon termination of New York lease, the Company recognized $31,000 of loss on leased assets.

Rent expense was $1.1 million and $1.2 million for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2022 and 2021, the Company had an operating lease right-of-use asset of $2.8 million and $3.5 million, respectively and lease liability of $3.3 million and $4.0 million, respectively. The weighted average remaining term of the Company’s leases as of December 31, 2022 was 3.7 years and the weighted-average discount rate was 12.9%.