Leases

3 Months Ended

Mar. 31, 2019

11. Leases

We have operating leases for our office facilities. Our leases have remaining lease terms of 1 year or less as of March 31, 2019. Our operating lease provides an option to renew for up to 3 years. Upon adoption of ASC 842, we did not elect to apply the hindsight expedient in evaluating our renewal option, and as such, we did not include the renewal period in our lease term because at the inception we were not reasonably certain that we would exercise the renewal option. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Our operating lease right-of-use asset and liability were recognized at the adoption date of ASC 842 based on the present value of lease payments over the remaining lease term at the adoption date. In determining the net present value of lease payments, we used our incremental borrowing rate based on the information available, including remaining lease term, at the adoption date of ASC 842.

The components of lease expense are as follows (in thousands):

	Three months ended March 31, 2019
Operating lease cost	$	459
Short-term lease cost		89

Supplemental cash flow information related to leases are as follows (in thousands):

	Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liability:
Operating cash flows from operating lease	$	676

Supplemental balance sheet information related to leases are as follows (in thousands):

	Classification	As of March 31, 2019
Operating lease
Lease right-of-use asset
Non-current	Prepaid and other long-term assets	$	1,734
Lease liability
Current	Accrued and other liabilities	$	2,683

Weighted Average Remaining Lease Term
Operating lease		1 year

Weighted Average Discount Rate
Operating lease		7.06%

Maturity of a lease liability is as follows (in thousands):

	Operating Lease
Year ending December 31,
2019 (excluding the three months ended March 31, 2019)	$	2,088
2020		696
Total lease payments		2,784
Less imputed interests		(101	)
Total lease liability	$	2,683