12.

Leases

The Company has noncancelable operating leases for office, manufacturing facilities, warehouse space, automobiles and equipment expiring at various dates through

2024.

As discussed in Footnote

the Company adopted ASC

842

as of

January 1, 2019,

using a current period adjustment method. In accordance with this method, the Company recognized a right of use asset of

$9.4

million and an operating lease liability of

$11.7

million as of

January 1, 2019.

As a result of using the current period adjustment method, the lease expense for the year ended

December 31, 2019

and

2018

was recognized under ASC

842,

and ASC

840,

the previous standard, respectively.

The components of lease expense for the year ended

December 31, 2019

are as follows:

	Year Ended
	December 31, 2019
	(in thousands)
Operating lease cost	$	2,084
Short term lease cost		245
Sublease income		(429	)
Total lease cost	$	1,900

Supplemental cash flow information related to the Company’s operating leases was as follows:

	Year Ended
	December 31, 2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:	$	2,530

Right-of-use assets obtained in exchange for lease obligations:	$	177

Supplemental balance sheet information related to the Company’s operating leases was as follows:

	December 31, 2019
	(in thousands)
Operating lease right-of use assets	$	8,463

Current portion, operating lease liabilities	$	2,424
Operating lease liabilities, long term		8,224
Total operating lease liabilities	$	10,648

Weighted average remaining lease term (in years)		8.1
Weighted average discount rate		9.2	%

Since most of the Company’s leases do

not

provide an implicit rate, the Company determines an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Future minimum lease payments for operating leases, with initial or remaining terms in excess of

one

year at

December 31, 2019,

are as follows:

	Operating
	Leases
	(in thousands)
2020	$	2,426
2021		1,945
2022		1,862
2023		1,832
2024		1,587
Thereafter		5,889
Total lease payments		15,541
Less interest		(4,893	)
Total operating lease liabilities	$	10,648

As presented in our

2018

Form

-K, the future minimum lease payments for operating leases, with initial or remaining terms in excess of

one

year at

December 31, 2018

were:

	Operating
	Leases
	(in thousands)
2019	$	2,250
2020		2,247
2021		1,987
2022		1,966
2023		1,990
Thereafter		7,559
Net minimum lease payments	$	17,999

Total rent expense was

$3.2

million and

$1.8

million for the year ended

December 31, 2018

and

2017,

respectively.