12.

Leases

We lease datacenters, corporate offices and fiber-optic cables under operating leases. The Company does

not

have any leases classified as finance leases.

Our leases have remaining lease terms of

year to

years, some of which

may

include options to extend the leases for up to

years, and some of which

may

include options to terminate the leases within

year.

We have elected to consider leases with a term of

months or less as short-term, and as such have

not

been recognized on the balance sheet. We recognize lease expense for short-term leases on a straight-line basis over the lease term.

The Company elected the practical expedient

not

to use hindsight when considering the likelihood that lessee options to extend or terminate a lease or purchase the underlying asset will be exercised, and in assessing the impairment of right-of-use assets.

As most of our leases do

not

provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

For corporate offices, datacenter and fiber-optic cable leases, the Company has elected the practical expedient to combine lease and non-lease components.

Description of leases

The components of lease expense were as follows (Dollar amounts in thousands of U.S. dollars):

	Three months ended,
	March 31, 2019
Operating Lease Cost (leases with a total term greater than 12 months)	$	1,071
Short-term Lease Cost (leases with a term of 12 months or less)		124
Variable Lease Cost		171
Total Lease Cost	$	1,366

Lease Cost is presented in general and administrative expenses and network expenses within our consolidated statements of operations and comprehensive income.

Information related to leases was as follows (Dollar amounts in thousands of U.S. dollars):

	Three months ended,
	March 31, 2019

Supplemental cashflow information:
Operating Lease - Operating Cash Flows (Fixed Payments)	$	1,051
Operating Lease - Operating Cash Flows (Liability Reduction)	$	948
New ROU Assets - Operating Leases	$	4,889

Other information:
Weighted Average Remaining Lease Term		5.24% (5.06% at Jan 1, 2019)
Weighted Average Discount Rate		8.55 years (5.52 years at Jan 1, 2019)

Maturity of lease liability as of

March 31, 2019 (

Dollar amounts in thousands of U.S. dollars):

	March 31, 2019
Remaining of 2019	$	2,450
2020		1,832
2021		1,668
2022		1,617
2023		1,538
Thereafter		5,583
Total future lease payments		14,688
Less interest		2,978
Total	$	11,710

Operating lease payments include payments under the non-cancellable term and approximately

$2.4

million related to options to extend lease terms that are reasonably certain of being exercised.

As of

March 31, 2019,

we have additional office space operating leases that have

not

yet commenced, with future lease payments of

$0.1

million. These operating leases will commence in the

second

quarter of

2019

with lease terms of

year or less, and therefore short-term.

January 2019,

the Company modified a corporate office lease to increase the term, leading to an increase to both the right of use operating lease asset and right of use operating lease liability of

$4.6

million.