On January 1, 2019, the Company adopted ASU 2016-02 Leases (Topic 842) using a modified retrospective method. The Company recognized $5.5 million of lease assets and liabilities. There was no impact to retained earnings upon adoption of Topic 842. The underlying assets of the Company’s leases primarily relate to office space leases, but also include some equipment leases. The Company determines if an arrangement qualifies as a lease at its inception. During 2019, the Company leased additional office space resulting in an initial recognition value of $9.8 million of lease assets and liabilities.

As a practical expedient permitted under Topic 842, the Company elected to account for the lease and non-lease components as a single lease component for all leases of which it is the lessee. Lease payments, which may include lease and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable amounts that depend on a rate or index as stipulated in the lease contract. When the Company cannot readily determine the

rate implicit in the lease, the Company determines its incremental borrowing rate by using the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment.

The Company enters into lease agreements with terms generally ranging from 2-7 years. Some of the Company’s lease agreements include Company options to extend the lease on a month to month basis or for set periods for up to five years. Many leases also include options to terminate the leases within one year or per other contractual terms. Renewal and termination options were generally not included in the lease term for the Company’s existing operating leases.

As of September 30, 2020 and December 31, 2019, all leases were classified as operating lease assets and liabilities. Additional information related to the operating lease assets and liabilities is as follows:

	September 30,			December 31,
	2020			2019
Operating Lease Assets	$	18,545		$	14,110
Operating Lease Liabilities	$	19,112		$	14,466
Weighted Average Remaining Term in years		4.93		5.01
Weighted Average discount rate used to measure outstanding lease liabilities		7.84	%		8.19	%

For the three months ended September 30, 2020 and 2019, the total lease cost for operating lease expense was $1.1 million and $0.6 million, respectively. For the nine months ended September 30, 2020 and 2019, the total lease cost for operating lease expense was $3.1 million and $1.4 million.

Supplemental cash flow information related to operating leases for the nine months ended September 30 is as follows:

	2020		2019
Operating cash flows for operating leases	$	3,322	$	1,223
Operating lease assets obtained in exchange for lease obligations	$	6,664	$	14,296

The maturities of the Company’s operating lease liabilities as of September 30, 2020 are as follows:

2020	$	1,223
2021		4,759
2022		4,636
2023		4,633
2024 and thereafter		7,846
Total future minimum lease payments less		23,097
Imputed interest		(3,985	)
Total operating lease liabilities	$	19,112