Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to require the recognition of lease assets and liabilities on the balance sheet of lessees. The Company implemented ASU 2016-02 as of January 1, 2019 using the optional modified retrospective transition method, which does not require the restatement of prior period amounts, and elected the following transition practical expedients: (i) to not reassess lease identification, lease classification and initial indirect costs related to those leases entered into prior to the adoption of ASC 842; and (ii) to not separate lease and non-lease components for its office lease portfolio. As of the implementation date, all of the Company's leases were operating leases and its total operating lease assets and liabilities were $2,411 and $2,887, respectively.

The Company leases office space, storage space and equipment (primarily vehicles). Certain office space leases include options to renew that generally can extend the lease term up to three years. The Company evaluates renewal options at lease inception on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants.

The table below presents the operating lease assets and liabilities recognized on the Company's consolidated balance sheets as of December 31, 2019:

	Balance Sheet Line Item	December 31, 2019
Non-current operating lease assets	Other assets	$	1,386
Operating lease liabilities:
Current operating lease liabilities	Accrued expenses and other current liabilities	1,135
Non-current operating lease liabilities	Other liabilities	397
Total operating lease liabilities		$	1,532

The depreciable lives of operating lease asset leasehold improvements are limited by the lease term.

The Company's leases generally do not provide an implicit rate, and therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating leases liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date.

The Company's weighted average remaining lease term and weighted average discount rate for operating leases as of December 31, 2019 are:

	December 31, 2019
Weighted average remaining lease term (years)	1.24
Weighted average discount rate	6.4	%

The table below reconciles the undiscounted future minimum lease payments (displayed in aggregate by year) under non-cancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheets as of December 31, 2019:

	December 31, 2019
2020	$	1,193
2021	401
Thereafter	—
Total undiscounted future minimum lease payments	1,594
Less: difference between undiscounted lease payments and discounted operating lease liabilities	(62)
Total operating lease liabilities	$	1,532

Operating lease payments include $44 related to options to extend lease terms that are reasonably certain of being exercised.

Operating lease costs were $2,154 the year ended December 31, 2019. Operating lease costs are included within selling, general and administrative expenses on the consolidated statements of operations.

Cash paid for amounts included in the measurement of operating lease liabilities were $1,589 for the year ended December 31, 2019. This amount is included in operating activities in the consolidated statements of cash flows.