NOTE 6—Leases

All of the Company’s leases are for office space. The Company entered into a sublease for a right of use asset in September 2021 that had sublease income that was significantly less than the head lease payments. On August 31, 2022, the Company entered into an agreement with the landlord to cancel the head lease for $260 in consideration paid by the Company to the landlord. On August 31, 2022, the Company derecognized the remaining lease liability and ROU asset. This resulted in a $730 gain on the termination of the lease. The sublease was terminated when the head lease was terminated.

The following table shows the activity of the ROU assets:

 Schedule of Right of Use Assets

The following table shows the activity of the lease liability:

 Schedule of Lease Liability

Future minimum lease payments under noncancelable operating lease commitments were as follows as of December 31, 2023:

 Schedule of Future Minimum Lease Payments under Noncancelable Operating Lease Commitments

In connection with leases, for the year ended December 31, 2023 and 2022, the Company recognized $266 and $398, respectively, of rent expense. Variable lease payments, including reimbursements to the landlord for property taxes and operating expenses, of approximately $143 and short-term rent payments of $11 were included in rent expense for the year ended December 31, 2022, and were offset by $80 in sublease income. The Company does not have any lease extension or termination options on any lease. There are no residual value guarantees in any lease. The weighted average remaining lease term of the operating leases is approximately 0.2 years for the years ended December 31, 2023 and 2022. The weighted average of the discount rate for each lease as of December 31, 2023 and 2022 is 8.5%.