Leases

9 Months Ended

Sep. 30, 2020

The Company has operating leases for corporate offices, data centers, and certain equipment. The Company's leases have lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. NantWorks, a related party, subleases one of the Company's data centers on the same terms the Company agreed with the lessor. Options to extend are included in the lease term where the Company is reasonably certain to exercise the options. Variable payments on the Company's leases are expensed as incurred, as they do not depend on an index, or rate. The Company concluded certain leases for data centers had a term of less than 1 year at inception, as arrangements are only renewed following marketplace assessments and negotiations with vendors.

The Company's leases do not indicate the rate implicit in the lease. As such, the Company has used its incremental borrowing rate, determined based on market indications of the rate at which the Company could borrow, adjusted for the term, value and payment schedule of individual leases, at the effective date for ASC 842 or at the lease commencement date for leases entered into after January 1, 2019.

Lease expense, charged to selling, general and administrative expense, for the three and nine months September 30, 2020 and 2019 consisted of:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease cost	$	604	$	594	$	1,814	$	1,788
Short-term lease cost	257		252		768		804
Variable cost	104		77		353		172
Sublease income	(52)		(52)		(156)		(156)
Total lease cost	$	913	$	871	$	2,779	$	2,608

Other information regarding the Company's leases:


	Nine Months Ended September 30,
	2020			2019
Operating cash flows for operating leases	$	(2,056)		$	(1,828)
Right-of-use assets obtained in exchange for new operating lease liabilities	$	110		$	—
Operating lease liabilities arising from obtaining right-of-use assets	$	110		$	—
Weighted average remaining lease term - operating leases	5.3 years			6.2 years
Weighted average discount rate - operating leases	11		%	11		%

As of September 30, 2020 and December 31, 2019, the Company had no material finance leases. The remaining lives of its operating leases ranged from one to nine years as of September 30, 2020.

Future minimum lease payments under the Company's operating leases at September 30, 2020 were:


Maturity Analysis	Amounts
Remainder of 2020	$	685
2021	2,621
2022	2,662
2023	2,673
2024	2,519
2025	666
Thereafter	1,687
Total future minimum lease payments	13,513
Less: imputed interest	(3,302)
Total	$	10,211
As reported on the Consolidated Balance Sheet
Accrued and other current liabilities	$	1,703
Operating lease liabilities	8,508
	$	10,211