Leases

12 Months Ended

Dec. 31, 2020

LEASES

On January 1, 2019, we adopted the new requirements of ASC 842, under the modified retrospective approach, using the effective date method. Under the effective date method, financial information and disclosures prior to January 1, 2019 are not required to be restated.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. 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 lease payments. Operating lease ROU assets also exclude lease incentives received. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

We have operating leases for office buildings and one vehicle. Our leases have remaining lease terms of 1 year to 7 years. Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows:


	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
Operating lease cost	$	2,721		$	2,496
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,816			2,697
Leased assets obtained in exchange for new operating lease liabilities	3,535			1,440
Weighted average remaining lease term (in years)	3.76			4.97
Weighted average discount rate	4.99		%	5.49		%

Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows:


Operating Lease Payments
Years ending December 31:
2021	$	2,353
2022	2,475
2023	1,342
2024	877
2025	364
2026	364
Thereafter	91

Total operating lease payments	7,866
Less imputed interest	(739)
Total operating lease liabilities	$	7,127

As of December 31, 2020, the Company had no operating lease liabilities that had not commenced.