Leases

We determine if an arrangement is a lease at inception. On our balance sheet, our office leases are included in right-of-use (“ROU”) lease asset, net and related lease liabilities are included in operating lease and operating lease, long-term. We determined that we do

not

currently have any leases that we are required to classify as finance leases.

ROU assets represent our right to use the underlying assets for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease agreements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term of the lease. For leases that do

not

provide an implicit rate, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of lease payments. We use the implicit rate in the lease when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

December 2019,

we entered into an operating lease agreement for a new corporate office facility in Seattle, Washington. The term of the lease is

months, with a rent date which started on

May 1, 2020

and the lease term ending on

July 31, 2027.

As a result of entering this lease agreement, in

December 2019,

we recorded additional ROU assets and net lease liabilities of

$1.2

million on our consolidated balance sheets. There was

material impact to our statement of operations or statement of cash flows as a result of entering into this lease.

Our leases have remaining terms of

one

eight

years. The only leases that contain renewal options are for office space leases at our Seattle and Trowbridge locations. In the

fourth

quarter of

2019,

we made the decision

not

to renew our Bellevue lease, which expired at the end of

May 2020,

and we made the decision

not

to renew our Taiwan lease, exiting that facility in

February 2020 (

see Note

11,

“Restructuring Costs”). Because of changes in our business, we are

not

able to determine with reasonable certainty whether we will renew our Seattle lease. As a result, we have

not

considered renewal options when recording ROU assets, lease liabilities or lease expense.

The following tables present the components of our lease expense and supplemental cash flow information related to our leases for the

six

months ended

June 30, 2020

(in thousands):

	Six Months Ended
Total component lease expense was as follows (in thousands):	June 30, 2020
Operating leases	$	472
Supplemental cash flow information related to leases was as follows (in thousands):
Cash paid for amounts included in the measurement of lease liabilities	$	519

The following table presents supplemental balance sheet information related to our operating leases as of

June 30, 2020

(dollars in thousands):

	June 30, 2020
Right-of-use lease assets	$	1,343

Current portion of operating lease liability	$	292
Operating lease liability, net of current portion		1,134
Total operating lease liabilities	$	1,426

Weighted average remaining lease term (years)		6.7
Weighted average discount rate		8.4	%

The following table presents the amounts we are obligated to pay, by maturity, under our operating leases liabilities as of

June 30, 2020

(in thousands):

Years Ended December 31,
2020, remainder of year	$	154
2021		272
2022		249
2023		255
2024		262
After 2024		709
Total minimum lease payments		1,901
Less: amount representing interest		(475	)
Present value of lease liabilities	$	1,426