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LEASES

6 Months Ended

Jun. 30, 2020

Disclosure Text Block [Abstract]

Lessor, Operating Leases [Text Block]

NOTE 8 – LEASES

We have entered into office space lease agreements, which qualify as operating leases under Topic 842. Under such leases, the lessors receive annual minimum (base) rent. The leases have original terms (excluding extension options) ranging from one to ten years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

We record base rent expense under the straight-line method over the term of the lease. In the accompanying condensed consolidated statements of comprehensive loss, rent expense is included in operating expenses under selling, general and administrative expenses. The components of the rent expense for the three and six months ended June 30, 2020 and 2019 were as follows:

		Three Months Ended June 30,								Six Months Ended June 30,
		2020				2019				2020				2019
Operating lease cost		$	521			$	563			$	1,073			$	1,142
Sublease income			(48	)			(37	)			(96	)			(74	)
Net rent expense		$	473			$	526			$	977			$	1,068

For purposes of calculating the operating lease assets and lease liabilities, extension options are not included in the lease term unless it is reasonably certain we will exercise the option, or the lessor has the sole ability to exercise the option. The weighted average discount rate of our operating leases is 10% and 9% as of June 30, 2020 and December 31, 2019, respectively. The weighted average remaining lease term is five and six years as of June 30, 2020 and December 31, 2019, respectively.

Supplemental cash flow information related to operating leases for the six months ended June 30, 2020 and 2019 follow:

		Six Months Ended June 30,
		2020				2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases		$	1,117			$	1,164
Non-cash operating activities:
Operating lease assets obtained in exchange for new operating lease liabilities		$	1,052			$	8,093

Future minimum commitments over the life of all operating leases, which exclude variable rent payments, are as follows:

Year Ending December 31		Operating Leases
2020 (remainder)		$	1,129
2021			2,354
2022			1,837
2023			1,142
2024			1,022
Thereafter			2,630
Total minimum lease payments			10,114
Less imputed interest			(2,102	)
Total lease liabilities		$	8,012