NOTE 20 – LEASES

The Company has various operating lease agreements, which are primarily for office space. These agreements frequently include one or more renewal options and require the Company to pay for utilities, taxes, insurance and maintenance expense. No lease agreement imposes a restriction on the Company’s ability to engage in financing transactions or enter into further lease agreements. At June 30, 2023, the Company has right-of-use assets of $1.2 million and a total lease liability for operating leases of $1.2 million of which $0.8 million is included in long-term lease liabilities and $0.4 million is included in current lease liabilities.

At June 30, 2023, future minimum lease payments for operating leases with non-cancelable terms of more than one year were as follows (in thousands):

During the six months ended June 30, 2023, the Company entered into new operating leases and lease amendments, resulting in the Company recognizing an additional operating lease liability of approximately $898,000 based on the present value of the minimum rental payments. The Company also recognized a corresponding increase to ROU assets of approximately $898,000, which represents a non-cash investing and financing activity.

During the six months ended June 30, 2022, the Company entered into new operating leases and lease amendments, resulting in the Company recognizing an additional operating lease liability of approximately $334,000 based on the present value of the minimum rental payments. The Company also recognized a corresponding increase to ROU assets of approximately $334,000, which represents a non-cash investing and financing activity.

Operating lease expense was $0.2 and $0.1 million for the quarters ended June 30, 2023, and 2022, respectively.

Operating lease expense was $0.3 million for both six-months ended June 30, 2023, and 2022.

Other information related to leases is as follows: