Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.23.1
LEASES
3 Months Ended
Mar. 31, 2023
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 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.

The lease expense during the three months ended March 31, 2023 and 2022 was approximately $280,000 and $303,000, respectively.

Future minimum lease payments under the lease agreements were as follows as of March 31, 2023 (in thousands):

 

 

 

Amount

 

2023 (nine months)

 

$

785

 

2024

 

 

1,063

 

2025

 

 

1,092

 

2026

 

 

836

 

Total lease payments

 

 

3,776

 

Less: Interest

 

 

692

 

Present value of lease liabilities

 

$

3,084

 

As of March 31, 2023, the Company had an operating lease right-of-use asset of $2.6 million and lease liability of $3.1 million reflected on the condensed consolidated balance sheet. The weighted average remaining term of the Company’s leases as of March 31, 2023 was 3.5 years and the weighted-average discount rate was 12.9%.