Operating Leases

12 Months Ended

Dec. 31, 2020

The Company adopted ASU No. 2016-02, Leases (Topic 842) on January 1, 2019 and recognized leases with duration greater than 12 months on the balance sheet using the modified retrospective approach. The Company has operating leases for two offices with terms that expire in 2022 and 2023. The Company estimates its incremental borrowing rate at lease commencement to determine the present value of lease payments since most of the Company's leases do not provide an implicit rate of return. The Company recognizes lease expense on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, the Company elected to account for non-lease components associated with its leases and lease components as a single lease component. Each of the Company's leases includes options for the Company to extend the lease term and/or sub-lease space in whole or in part.

Operating lease liabilities and right-of-use assets were recorded in the following captions of our balance sheet as follows (in thousands):


	December 31, 2020		December 31, 2019
Right-of Use Assets:
Other assets	$	574	906
Total Right-of-Use Asset	$	574	906

Operating Lease Liabilities:
Accrued liabilities	$	370	$	353
Other long-term liabilities	254		624
Total Operating Lease Liabilities	$	624	$	977

As of December 31, 2020, the weighted average remaining lease term for our operating leases was 1.83 years, and the weighted average discount rate for our operating leases was 9.625%. Future minimum lease payments under the lease agreements as of December 31, 2020 were as follows (in thousands):


Years ended	Operating Leases
2021	$	414
2022	239
2023	26
Total lease payments	679
Less: Amounts representing interest	(55)
Present value of lease liabilities	$	624