NOTE

– LEASES

January 1, 2019,

the Company adopted ASU

2016

using the modified retrospective method as of the effective date of

January 1, 2019 (

the effective date method). Under the effective date method, financial results reported in periods prior to

2019

are unchanged. In transition to the new lease guidance, the Company elected the package of practical expedients permitted under the transition guidance within the new standard which allowed the Company to

not

reassess whether a contract is or contains a lease, lease classification and initial direct costs; however, the Company did

not

elect the hindsight transitional practical expedient. The Company has also elected the practical expedient to

not

account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the nonlease components. After assessment of the cumulative impact of adopting ASU

2016

02,

it was determined that the cumulative effect adjustment required under the new guidance was immaterial and therefore the Company did

not

record a retrospective adjustment to the opening balance of retained earnings at

January 1, 2019.

The Company recognized additional operating lease right-of-use assets and lease liabilities of

$1.6

million as of

January 1, 2019.

The Company is currently a lessee under a number of operating leases and

one

finance lease for certain offices, manufacturing facilities, land, office equipment and automobiles,

none

of which are material to its operations. The Company’s leases generally have remaining lease terms of

year to

years, some of which include options to extend the leases for up to

years, and some of which include options to terminate the leases within

year. 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.

Supplemental information related to leases and the Company’s Consolidated Financial Statements is as follows:

	Three Months Ended March 31,
	2019
Components of lease costs:
Operating lease costs	$	127
Short-term lease costs		111
Finance lease costs		5
Total lease costs	$	243

Weighted average remaining lease term (years):
Operating leases		3.0
Finance lease		4.9
Weighted average discount rate:
Operating leases		3.25	%
Finance lease		3.25	%

	As of March 31, 2019
	Operating Leases		Financing Leases		Total Leases

Other assets - right-of-use assets	$	1,389	$	279	$	1,668
Lease liabilities included in:
Accrued expenses - current portion of lease liabilities	$	668	$	53	$	721
Other long-term liabilities - non-current portion of lease liabilities		720		226		946
Total lease liabilities	$	1,388	$	279	$	1,667

Maturities of lease liabilities are as follows:

	As of March 31, 2019			As of December 31, 2018
2019	$	589		$	702
2020		486			411
2021		322			260
2022		186			124
2023		137			75
Thereafter		19			10
Total lease payments	$	1,739		$	1,582
Less: Interest		(72	)
Present value of lease liabilities	$	1,667