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Leases

6 Months Ended

Jun. 30, 2019

(10) Leases

The Company’s operating lease portfolio is comprised of operating leases for office, warehouse space and equipment. Certain of the Company’s leases include one or more options to renew or terminate the lease at the Company’s discretion. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in our lease term.

The adoption of Topic 842 resulted in the Company recognizing operating lease liabilities totaling $2,556 with a corresponding right-of-use (“ROU”) asset of $2,212 based on the present value of the minimum rental payments of such leases. The variance between the ROU asset balance and the lease liability is deferred rent liability that existed prior to the adoption of the ASC 842 and was offset against the ROU asset balance during the adoption. As of June 30, 2019, the ROU asset had a balance of $2,059 which is included in the “Operating lease right-of-use assets” line item of these condensed consolidated financial statements and current and non-current lease liabilities related to the ROU asset of $329 and $2,038 respectively, and are included in the “Current portion of operating lease obligations” and “Long-term portion of operating lease obligations” line items of these condensed consolidated financial statements. The discount rates used for leases accounted for under ASC 842 are based on an interest rate yield curve developed for the leases in the Company’s portfolio.

The office leases contain variable lease payments which consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components.

Quantitative information regarding the Company’s leases is as follows:

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	17	$	34
Interest on finance lease liabilities		14		30
Total finance lease costs		31		64
Operating lease cost components:
Operating lease cost		123		246
Variable lease cost		27		54
Short-term lease cost		30		52
Total operating lease costs		180		352

Total lease cost	$	211	$	416

Supplemental cash flow information related to leases is as follows for the six months ended June 30, 2019:

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	336

Weighted-average remaining lease term-finance leases (in years)		2.4
Weighted-average remaining lease term-operating leases (in years)		3.5
Weighted-average discount rate-finance leases		9.1	%
Weighted-average discount rate-operating leases		14.4	%

The future maturities of the Company’s finance and operating leases as of June 30, 2019 is as follows:

	Finance Leases			Operating Leases			Total
2019	$	137		$	338		$	475
2020		255			616			871
2021		196			618			814
2022		109			632			741
2023		5			642			647
2024 and thereafter		—			580			580
Total payments	$	702		$	3,426		$	4,128
Less amounts representing interest		(85	)		(1,059	)		(1,144	)
Total minimum payments required:	$	617		$	2,367		$	2,984