(11) Leases

On the date of adoption of Topic 842, the Company had noncancelable operating leases for office and warehouse space in San Clemente, California and noncancelable operating leases for certain office equipment that expire at various dates through 2022. Financing lease arrangements and the effects of any lease modifications have not been material. Certain of the Company’s equipment leases include variable lease payments that are adjusted periodically based on actual usage. Lease and non-lease components are accounted for separately.

The Company determines the lease term as the noncancelable period of the lease, and may include options to extend or terminated the lease when reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. The Company uses its incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. Right-of-use assets also include any lease payments made at or before lease commencement and any initial direct costs incurred, and exclude any lease incentives received.

Operating lease costs for the year ended December 31, 2019 were $0.4 million. Variable lease costs were not material.

Supplemental information related to operating leases is as follows:


Balance Sheet Information at December 31, 2019
Operating lease ROU assets	$	758

Operating lease liabilities, current portion	$	291
Operating lease liabilities, long-term portion		477
Total operating lease liabilities	$	768

Cash Flow Information for the Year Ended December 31, 2019
Cash paid for amounts included in the measurement of operating leases liabilities	$	432

Maturities of operating lease liabilities at December 31, 2019 were as follows:


Twelve months ending December 31,
2020	$	323
2021		331
2022		166
Total lease payments		820
Less: imputed interest		52
Total lease liabilities	$	768

Weighted-average remaining lease term at end of period (in years)		2.4
Weighted-average discount rate at end of period		5.1	%

Disclosures related to periods prior to adopting the new lease guidance

Future minimum lease commitments under noncancelable operating leases as of December 31, 2018 were as follows:


Year ending December 31,
2019	$	449
2020		332
2021		331
2022		166
Total	$	1,278

For the year ended December 31, 2018, total rent expense recognized for all operating leases was $0.8 million.