Note 15

Commitments:

Leases

The Company recognizes right-of-use assets (“ROU assets”) and operating lease liabilities when it obtains the right to control an asset under a leasing arrangement with an initial term greater than twelve months. The Company adopted the short-term accounting election for leases with a duration of less than one year. The Company leases its facilities and certain IT and office equipment under non-cancellable operating leases. All of the Company's leasing arrangements are classified as operating leases with remaining lease terms ranging from 1 to 5 years, and one facility lease has a renewal option for two years. Renewal options have been excluded from the determination of the lease term as they are not reasonably certain of exercise. The Company entered into an addendum with FR National Life, LLC for the Carlsbad facility. The extension began on October 1, 2019 for five years and was executed on May 1, 2019. Included in cash flows provided by operations for the nine months ended September 30, 2020 and 2019, there was amortization of right-of-use assets of $242 and $240, respectively.

Operating lease costs were $112 and $336 and $108 and $335 for the three and nine months ended September 30, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $113 and $320, and $110 and $314 for the three and nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, the incremental borrowing rate was 9.76 % and the weighted average remaining lease term was 3.4 years. The following table summarizes the Company’s operating lease maturities as of September 30, 2020:

For the year ending December 31,	Amount
Remaining 2020	$	115
2021		456
2022		371
2023		242
2024		186
Total remaining lease payments		1,370
Less: imputed interest		(205	)
Total lease liabilities	$	1,165

Contingencies:

In the ordinary course of business, the Company is routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings are generally based on alleged violations of employment, contract and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company. In the ordinary course of business, the Company is also subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. In connection with formal and informal inquiries by federal, state, local and foreign agencies, the Company receives numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of its activities.