We operate from leased properties under non-cancelable operating lease agreements, certain of which contain escalating lease clauses.

During the first quarter of 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date as of April 1, 2019. The Company did not apply the new standard to comparative periods and therefore, those amounts are not presented below.

The Company elected the package of three practical expedients. As such, the Company did not reassess whether expired or existing contracts are or contain a lease and did not need to reassess the lease classifications or reassess the initial direct costs associated with expired or existing leases. The Company did not elect the hindsight practical expedient. The land easement practical expedient was not applicable to the Company. Also, the Company has elected to take the practical expedient to not separate lease and non-lease components for all asset classes. The Company made an accounting policy election to continue not to recognize leases with durations of twelve months or less on the balance sheet. The Company did not enter into any new leases during the quarter ended June 30, 2019.

The Company leases office space under operating leases. The Company’s portfolio of leases is primarily related to real estate and since most of our leases do not provide a readily determinable implicit rate, the Company estimated its incremental borrowing rate to discount the lease payments based on information available at either the implementation date of Topic 842 or at lease commencement for leases entered into thereafter.

The table below presents the lease-related assets and liabilities recorded on the balance sheet as of June 30, 2019:



(In thousands)	Classification on the Balance Sheet	June 30, 2019
Assets

Noncurrent	Operating lease right-of-use asset	$	2,169

Liabilities

Current	Operating leases - current portion	$	926
Noncurrent	Operating leases - long -term portion	1,333
Total operating lease liabilities		$	2,259

Weighted-average remaining lease term in years		2.37
Weighted-average discount rate (1)		5.10		%
(1) Upon adoption of the new lease standard, discount rates used for existing leases were established at April 1, 2019.



Lease Costs
The table below presents certain information related to lease costs for leases:
(In thousands)	Three Months Ended June 30, 2019
Operating lease cost	$	226
Total lease cost	$	226



Other Information

The table below presents supplemental cash flow information related to leases:
(In thousands)	Three Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	214



Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for the remaining years on the leases to the lease liabilities recorded on the balance sheet as of June 30, 2019.
(In thousands)	Operating Leases
2020 ( remaining nine months)	$	769
2021	1,031
2022	595
2023	—
Thereafter	—
Total minimum lease payments	$	2,395
Less: Interest	136
Present value of lease liabilities	$	2,259