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Leases

3 Months Ended

Mar. 31, 2020

LeasesOperating 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 the 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.

As of March 31, 2020, the Company has an operating lease liability of approximately $2.1 million and right-of-use asset of approximately $2.3 million, which are included in the condensed consolidated balance sheets.

Quantitative information for the operating lease is as follows:


Condensed Consolidated Statement of Operations (In thousands)	For the Three Months Ended March 31, 2020		For the Three Months Ended March 31, 2019
Operating lease expense	$	166	$	74
Short-term lease rent expense	27		3
Total rent expense	$	193	$	77


Condensed Consolidated Statements of Cash Flows (In thousands)	For the Three Months Ended March 31, 2020		For the Three Months Ended March 31, 2019
Cash paid for Operating Lease Liabilities	$	143	$	99


Other Information	March 31, 2020		March 31, 2019
Weighted-average remaining lease term – operating leases (years)	4.3		0.0
Weighted-average discount rate – operating leases	10.15	%	9.25	%

Maturities of the operating lease liabilities are as follows:


(In thousands)	Amount
Remaining in 2020	$	438
2021	603
2022	623
2023	644
2024	328

Total lease payments	2,636
Less: imputed interest	(513)
Present value of lease liabilities	2,123
Less: current portion	(389)
Lease liabilities, non-current	$	1,734

The Company incurred rent expense of approximately $0.2 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively.

Capital leases

The Company engaged in agreements to lease computer equipment during the quarter ended March 31, 2020. The computer equipment under capital leases is included in right of use asset within the condensed consolidated balance sheets and was $0.3 million as of March 31, 2020. Lease amortization at March 31, 2020 was approximately $0.04 million.

As of March 31, 2020, the future minimum lease payments under capital leases are as follows (in thousands):


	For the Three Months Ended March 31, 2020
Total lease payments	$	367
Less: interest	(26)
Present value of lease liabilities	341
Less: current portion	(144)
Lease liabilities, non-current	$	197

Leases