7. Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The Company adopted ASU No. 2016-02 on January 1, 2019 for leases that existed on that date. The Company has elected to apply the provisions of ASC 842 modified retrospectively at January 1, 2019 through a cumulative-effect adjustment. Prior period results continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods. The company recorded a lease asset and lease liability of approximately $0.3 million on its balance sheet as of January 1, 2019, with no impact on its statement of operations.

The Company has no finance leases and one operating lease for office space in Princeton, NJ. Operating lease expense was $193 for the year ended December 31, 2019.

Operating cash flows used for operating leases during the year ended December 31, 2019 were $152. As of December 31, 2019, the weighted-average remaining lease term was 0.92 years and the weighted average discount rate was 21.2%.

Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows:


2020	$	191
Total	$	191
Less: Interest		(19)
Present value of lease liability	$	172