Leases

On January 1, 2019, the Company adopted a new accounting standard, Topic 842, that amends the guidance for the accounting and reporting of leases. Leases with terms of 12 months or less are expensed on a straight-line basis over the term and are not recorded in the Company's Consolidated Balance Sheets.

The Company entered into two operating leases during the year ended December 31, 2019 with terms greater than 12 months. In accordance with the guidance of Topic 842, the two leases which are classified as operating leases are included in the Company's Consolidated Balance Sheet as of December 31, 2019. The Company's two operating leases do not include options to renew, do not contain residual value guarantees, do not have variable lease components, or impose significant restrictions or covenants.

Right of use assets, "ROU assets", represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments over the respective lease term, with the ROU asset adjusted for deferred rent liability. Lease expense is recognized on a straight line basis over the lease term. As the implicit rate on the leases is not determinable, the Company used an estimated incremental borrowing rate of 9% as the discount rate to determine the present value of lease payments. The weighted average discount rate used was 9% and the weighted average remaining lease term is 1.5 years at December 31, 2019. The ROU assets and corresponding operating lease liability recognized at lease inception was$949 thousand.

The following table summarizes information related to the Company's two operating leases and are included in the Company's Balance Sheet as of December 31, 2019.



Balance Sheet descriptions
Assets:	(in thousands)
Right of use assets - operating leases	$	768
Liabilities:
Operating leases - current	$	517
Operating leases - long term	255
Total lease liabilities	$	772

The following table summarizes the components of operating lease cost for the year ended December 31, 2019.



Lease costs (in thousands)
Operating expenses - lease costs	$	177

As of December 31, 2019, future minimum operating leases payments related to the Company’s operating lease liabilities were as follows:



(in thousands)
2020	$	542
2021	287
Total lease payments	829
Less imputed interest	(57		)
Present value of operating lease liabilities	$	772