Leases |
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Leases | 10. Leases
As of March 31, 2024, all of the Company’s leases are classified as operating and primarily consist of office space leases expiring in 2024 through 2028. The Company elected not to include short-term leases (i.e., leases with initial terms of less than twelve months), or equipment leases (deemed immaterial) on the statements of financial condition. The Company leases some miscellaneous office equipment, but they are immaterial and therefore the Company records the costs associated with this office equipment on the statements of operations rather than capitalizing them as lease right-of-use assets. The balance of the lease right-of-use assets and lease liabilities are displayed on the statements of financial condition and the below tables display further detail on the Company’s leases.
On July 7, 2023, the Company entered into a new lease agreement expiring in December 2028 for office space in the World Financial Center in New York City. This office replaced the New Jersey office as one of the Company’s key operating centers and the total commitment of the lease is approximately $2.1 million. The estimated build out cost for this office space is approximately $800,000. Depreciation expense commenced in March 2024, when the New York office space was placed into service. The Company is building out its office in Omaha, Nebraska, and as of March 31, 2024 has incurred approximately $99,000 out of the $144,000 estimated build out costs.
Lease Commitments
Future annual minimum payments for operating leases with initial terms of greater than one year as of March 31, 2024 were as follows:
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