Leases

12 Months Ended

Dec. 31, 2019

Operating leases

In September 2018, the Company signed an operating lease for the new corporate headquarters in Santa Monica, CA (“Santa Monica Headquarters”). The lease agreement includes 7,869 square feet for 60 months commencing in July 2019, which is 30 days following date the premises were ready for occupancy. The base annual rent is approximately $0.6 million subject to annual adjustments.

The Company’s lease liability resulted from the lease of the Santa Monica Headquarters which expires in 2024. This lease does not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The lease includes renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liability and right-of-use asset as the Company is not reasonably certain to exercise the options. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. The Company does not act as a lessor or have any leases classified as financing leases. The discount rate used in measuring the lease liability and right of use assets were determined by reviewing our incremental borrowing rate at the measurement date.

As of December 31, 2019, the Company has an operating lease liability of approximately $2.2 million and right-of-use asset of approximately $2.4 million, which are included in the consolidated balance sheets.

As of December 31, 2019, supplemental information related to operating leases was as follows (in thousands):


Consolidated Statement of Operations	Operating Leases
Operating lease expense	$	443


Short-term lease rent expense			58


Total rent expense	$	501

Consolidated Statements of Cash Flows


Operating cash flows from operating leases			$	381


Right-of-use assets obtained in exchange for lease obligations			$	2,574



Other Information
Weighted-average remaining lease term			4.5 years


Weighted-average discount rate			10.15		%

As of December 31, 2019, the future minimum lease payments under operating leases are as follows (in thousands):


	Operating Leases
2020	$	581
2021	603
2022	623
2023	644
2024	329
Total lease payments	$	2,780
Less: imputed interest	(570)
Present value of lease liabilities	$	2,210
Less: current portion	(374)
Lease liabilities, non-current	$	1,836

Total rent expense under operating leases was approximately $0.4 million and $0.3 million for the years ended December 31, 2019 and 2018, respectively.

Capital leases

The Company entered into agreements to lease computer equipment during the year ended December 31, 2019. The computer equipment under capital leases is included in right of use asset within the consolidated balance sheets and was $0.4 million as of December 31, 2019. Lease amortization at December 31, 2019 was approximately $0.1 million.

As of December 31, 2019, the future minimum lease payments under capital leases are as follows (in thousands):


	Capital Leases
Total lease payments	$	406
Less: interest	(28)
Present value of lease liabilities	$	378
Less: current portion	(145)
Lease liabilities, non-current	$	233

Leases