Effective January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” and the related ASUs that followed (collectively referred to as “Topic 842”). Topic 842 requires the recognition of right of use (“ROU”) lease assets and liabilities by lessees for all leases greater than one year in duration and classified as operating leases under U.S. GAAP.

The Company elected the package of practical expedients which allows the Company to apply the transition provision for Topic 842 at its adoption date instead of at the earliest comparative period presented in our financial statements. Therefore, existing leases at January 1, 2019 were recognized and measured but without retrospective application. The Company also elected the short-term lease practical expedient but did not elect the hindsight practical expedient.

The impact of Topic 842 on the Company’s balance sheet beginning January 1, 2019 was the recognition of ROU assets and lease liabilities for operating leases. There was no income to the Company’s statement of comprehensive loss or beginning retained earnings related to the adoption of Topic 842.

The Company’s operating lease commitments consist of obligations under operating leases for its facilities and office equipment. The Company has leases for its operating facilities in New Haven, Connecticut and Blue Bell, Pennsylvania. The lease agreements require monthly lease payments through September 2022 and November 2022, respectively. In September 2019, the Company modified its existing building lease for its New Haven, CT facilities to exit the majority of its current space early and entered into a lease agreement for new space in the same building in New Haven, CT. The Company does not have any leases that are classified as finance leases.

The Company determines if an arrangement is a lease at inception. For purposes of calculating operating lease liabilities, lease terms may include options to extend or terminate the lease when it becomes probable that the Company will exercise the option. As the rate implicit in the lease is generally not readily determinable for the Company’s operating leases, the discount rates used to determine the present value of its lease liability are based on the Company’s incremental borrowing rate at the lease commencement date.

The following table summarizes the Company’s lease obligations as of September 30, 2019:

Year Ending December 31,
Remainder of 2019	$	288
2020		800
2021		802
2022		638
Total lease payments		2,528
Less: imputed interest		(256	)
Total	$	2,272

The following table summarizes the Company’s lease obligations as of December 31, 2018:

Year Ending December 31,
2019	$	1,239
2020		551
2021		322
2022		287
Total	$	2,399

Expense related to the Company’s operating leases is included in operating expenses and was $262 and $235 for the three months ended September 30, 2019 and 2018, respectively, and $858 and $671 for the nine months ended September 30, 2019 and 2018, respectively.

As of September 30, 2019, the carrying value of the ROU assets was $2,265 and is separately stated on the Company’s balance sheet. The related short-term and long-term liabilities as of September 30, 2019 were $754 and $1,518, respectively.

During the nine months ended September 30, 2019 cash paid for operating leases was $783. As of September 30, 2019, the weighted average remaining lease term was 2.9 years and the weighted average incremental borrowing rate was 7.1%.