. LEASES

The Company has operating leases for administrative and sales and marketing offices, manufacturing operations and research and development facilities, employee housing units, and certain equipment. The leases have remaining lease terms from

one

four

years. Some of the leases include renewal options which can extend the lease term for up to

five

years or on a month-to-month basis. The Company does

not

have finance lease arrangements.

As permitted by Topic

842,

the Company does

not

recognize leases with a term of

months or less on the Condensed Consolidated Balance Sheets. For all lease arrangements that contain lease and nonlease components, the Company has elected the practical expedient to combine them as single lease components. As of

March 31, 2019,

operating lease ROU assets totaled

$2.8

million and operating lease liabilities totaled

$2.2

million. The Company recognizes operating lease costs on a straight-line basis over the lease term.

Because the implicit rate in each lease is

not

readily determinable, the Company uses its incremental borrowing rate to determine the present value of the remaining lease payments.

The following tables summarize certain information related to the leases (in thousands, except years and percentages):

	Three Months Ended
	March 31, 2019
Lease costs:
Operating lease costs	$	305
Short-term lease costs		98
Total lease costs	$	403

Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	304
ROU assets obtained in exchange for operating lease liabilities (1)	$	2,264

	March 31, 2019
Weighted-average remaining lease term (in years)		2.3
Weighted-average discount rate		4.1	%

____________

(

) Includes

$2.2

million for operating leases existing on

January 1, 2019

and

$0.1

million for new operating leases commenced during the

three

months ended

March 31, 2019.

As of

March 31, 2019,

the maturities of the lease liabilities are as follows (in thousands):

2019 (remaining nine months)	$	957
2020		859
2021		254
2022		193
2023		58
Total remaining lease payments		2,321
Less: imputed interest		(167	)
Total lease liabilities	$	2,154
Reported as:
Current liabilities	$	1,158
Long-term liabilities	$	996