|9 Months Ended
Sep. 30, 2022
The Company leases certain corporate office space under an operating lease agreement. We determine if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in lease arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The lease expires May 31, 2025 and requires base rent ranging from $3,563 to $3,893 per month.
The components of lease expense and supplemental cash flow information related to leases are as follows:
Future minimum lease payments under operating leases as of September 30, 2022 are as follows: