OPERATING LEASES

12 Months Ended

Dec. 31, 2019

NOTE 7- OPERATING LEASES

The Company’s leases consist of operating leases for office space in PRC, India, Japan and the United States. The Company determines if an arrangement is a lease at inception. As of December 31, 2019, the Company had no long-term leases that were classified as a financing lease. As of December 31, 2019, the Company did not have additional operating leases that have not yet commenced.

Total operating lease expenses for the year ended December 31, 2019 was $1.9 million, including $0.5 million in cost of net sales and $1.4 million in operating expense on the consolidated statement of comprehensive income (loss).

As of December 31, 2019, the Company recognized operating lease ROU assets of $2.9 million and total lease liabilities $3.0 million, including a current portion of $1.6 million for operating leases.

	For the year ended December 31, 2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used in operating leases	$	1,790
Right-of-use assets obtained in exchange the new lease obligations:
Operating leases	$	2,860
Weighted average remaining lease term
Operating leases	1.9 years
Weighted average discount rate
Operating leases		4.38	%

Maturities of lease liabilities as of December 31, 2019 are as follows:

	Amount
	(in thousands)
2020	$	1,680
2021		1,223
2022		179
2023		12
2024		—
Thereafter		—
Total future lease payments		3,094
Less: Imputed interest		135
Total lease liability balance	$	2,959

For comparative periods prior to the adoption of the new accounting guidance on January 1, 2019, the Company has retained the following disclosures as previously reported. Future minimum lease payments under non-cancelable operating leases as of December 31, 2018 were as follows:

	Amount
	(in thousands)
2019	$	1,674
2020		1,112
2021		649
2022		—
2023		—
Thereafter		—
Total	$	3,435

Rent expense for the years ended December 31, 2018 and 2017 were $2.1 million and $1.9 million, respectively.