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)

LEASES

As previously discussed in Note

we account for our leases in accordance with the guidance in ASC Topic

842,

which was effective for us as of

January 1, 2019.

In connection with the implementation of ASC Topic

842,

we recorded non-cash increases in operating lease liabilities and ROU assets of

$5,197

and

$4,816,

respectively, as of the effective date of this guidance.

We lease our offices, warehouse facilities and certain equipment under non-cancellable operating leases that expire at various dates through

2028.

Total operating lease and short-term lease costs for years ended

December 31, 2019

and

2018,

respectively, were as follows:

	Years Ended December 31,
	2019		2018

Operating lease cost	$	1,476	$	1,513
Short-term lease cost	$	51	$	55

The following is additional information about our leases as of

December 31, 2019:

Range of remaining lease terms (in years)	0.8	to	8.4
Weighted average remaining lease term (in years)		5.5
Weighted average discount rate		5.0%

Maturities of lease liabilities as of

December 31, 2019

were as follows:

2020	$	1,527
2021		1,007
2022		824
2023		834
2024		859
Thereafter		766
Total lease payments	$	5,817
Less imputed interest		(721	)
Total	$	5,096

Cash Flow Information

Total amortization of right of use assets for the year ended

December 31, 2019

was

$1,251.

Supplemental cash flow information related to leases for the year ended

December 31, 2019

was as follows:

Non-cash increases (decreases) in operating lease liabilities and ROU assets as a result of lease modifications:
Modification to Ambrell’s U.K. facility lease	$	(486	)
Modification to lease for facility in Mansfield, Massachusetts	$	1,811
Modification to Ambrell’s Netherlands facility lease	$	(48	)

The lease for Ambrell’s U.K. facility had an original term of

years, which extended through

August 2029.

The lease included the option to terminate the lease at specified points in time without penalty. We exercised this option in

March 2019,

and the lease expired in

September 2019.

At the effective date of this modification, we recorded a reduction in our ROU assets and operating lease liabilities of approximately

$486.

April 8, 2019,

we executed an amendment to the lease for our facility in Mansfield, Massachusetts that extended the term of the lease for an additional

forty

months to

December 31, 2024

and expanded the amount of leased space by approximately

6,100

square feet. The current rate per square foot that is in place through

August 31, 2021 (

the original expiration date of the lease) did

not

change. After

August 31, 2021,

there are predetermined fixed escalations of the rate as outlined in the amendment. As a result of this modification, we recorded an increase in our ROU assets and operating lease liabilities of approximately

$1,811.

During the

third

quarter of

2019,

the lease for a portion of Ambrell’s facility in the Netherlands was modified to reduce the term of that lease to expire in

September 2019

as that portion of the space was

longer needed. At the effective date of this modification, we recorded a reduction in our ROU assets and operating lease liabilities of approximately

$48.

Prior Period Disclosures under ASC Topic

840

(Leases)

Prior to

January 1, 2019,

we accounted for our leases in accordance with the guidance in ASC Topic

840.

Under the guidance in ASC Topic

840,

total rental expense for the year ended

December 31, 2018

was

$1,848

which includes costs for common area maintenance, property taxes and insurance charges incurred by the landlord for the facilities which we occupy. These costs are

not

included in operating lease cost under the guidance in ASC Topic

842.

The aggregate minimum rental commitments under the non-cancellable operating leases in effect at

December 31, 2018

were as follows:

2019	$	1,710
2020		1,612
2021		868
2022		296
2023		286
Thereafter		1,421
Total	$	6,193