NOTE 8 –LEASES

The Company leases space under non-cancelable operating leases for several office and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions.

Most leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, it applies a portfolio approach for determining the incremental borrowing rate.

The components of lease expense were as follows:

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	363	$	1,064
Short-term lease cost		92		117
Lease cost	$	455	$	1,181

Supplemental cash flow information related to operating leases was as follows for the period ended September 30, 2019:

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	455	$	1,181

Maturities of lease liabilities for all operating leases were as follows as of September 30, 2019:

	December 31,
2019	$	364
2020		1,488
2021		1,475
2022		1,495
2023		53
2024		13
Total lease payments		4,888
Less: Interest		(683	)
Present value of lease liabilities	$	4,205

The weighted average remaining lease terms and discount rates for all operating leases were as follows as of September 30, 2019:

	September 30, 2019
Remaining lease term and discount rate:
Weighted average remaining lease term (years)	3.27
Weighted average discount rate	5.42%