LEASES

The Company leases all of its office spaces and has various operating leases that expire through 2024. On January 1, 2019 (the "Adoption Date"), the Company adopted ASC 842 Leases, using the alternative modified transition method to apply the standard and measure leases existed at, or entered into after the Adoption Date. Upon adoption of ASC 842, the Company recognized operating lease liabilities of $4.9 million, which represents the present value of the remaining lease payments of outstanding leases as of the Adoption Date using an estimated incremental borrowing rate of 3.25%. The Company did not enter into any new leases in the six months ended June 30, 2019. The Company also recognized ROU assets of $4.0 million which represent the Company's right to use an underlying asset for the lease term. In conjunction with the adoption of ASC 842, the Company elected the following practical expedients: (i) combining lease and non-lease components, (ii) leases with an initial term of 12 months or less are not recorded in the condensed consolidated balance sheets, and the associated lease payments are recognized in the condensed consolidated statements of operations on a straight-line basis over the lease term, and (iii) applying discount rates to operating leases using a portfolio approach.

There was no cumulative-effect adjustment recognized on the beginning retained earnings as a result of the adoption. The comparative periods presented in this Form 10-Q reflect the former lease accounting guidance.

Below is a summary of our ROU assets and lease liabilities as of the Adoption Date and June 30, 2019, respectively (in thousands):



	Balance Sheets Classification	June 30, 2019		January 1, 2019
Assets
Operating lease assets	Other assets	$	3,628	$	4,048
Liabilities
Operating lease liabilities - current	Other current liabilities	1,170		1,157
Operating lease liabilities - long-term	Other long-term liabilities	3,207		3,693
Total lease liabilities		$	4,377	$	4,850

The table below provides supplemental information related to operating leases during the six months ended as of June 30, 2019 (in thousands except for lease term):



Cash paid within operating cash flow	$	579
Weighted average lease terms (in years)	3.84

Operating lease ROU assets and liabilities commencing after the Adoption Date are recognized at commencement date based on the present value of lease payments over the lease term. Under ASC 842, all operating lease expenses are recognized on a straight-line basis over the lease term. During the three and six months ended June 30, 2019, and 2018, the Company's operating lease expenses are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Operating lease costs	$	275	$	290	$	555	$	608

As of December 31, 2018, the Company had $764,000 in deferred rent which represented unamortized lease incentives on its outstanding leases and was recorded as a reduction to the ROU assets recognized at the Adoption Date.

Minimum future lease payment obligations as of June 30, 2019 are as follows (in thousands):



For the Years Ending December 31,
2019	$	615
2020	1,215
2021	1,197
2022	1,172
2023	456
Thereafter	24
Total	$	4,679