Note 14. Leases

On January 1, 2019, we adopted Financial Accounting Standards Board (“the FASB”) ASC Topic 842, Leases (ASC 842) (the “new lease standard”), using a modified retrospective transition approach with application as of the effective date of initial application without restating comparative period financial statements. The core principle of the new lease standard is that a lessee should recognize the assets and liabilities that arise from leases, including operating leases, in the statement of financial position. We measure our lease liabilities as the present value of remaining lease payments using our incremental borrowing rate applicable to the lease term as the discount rate. We elected to apply the package of practical expedients to our adoption of the new lease standard, which includes allowing us to continue utilizing historical classification of leases. We did not elect the practical expedient that permits a reassessment of lease terms for existing leases.

The Company is a lessee under leases for land, office space and equipment with third parties, all of which are accounted for as operating leases. These leases generally have an initial term of one to seven years and provide for fixed monthly payments. Some of these leases provide for future rent escalations and renewal options and certain leases also obligate us to pay the cost of maintenance, insurance and property taxes. Total lease cost was $0.9 million and $2.2 million for the years ended December 31, 2019 and 2018, respectively. Leases with a term of one year or less are classified as short-term and are not recognized in the statement of financial position.

A summary of the classification of operating leases on our consolidated balance sheet as of December 31, 2019 (amounts in thousands):


		December 31, 2019
Operating lease right-of-use assets		$	1,833
Operating lease liability, current	(Other accrued expenses)		538
Operating lease liability, non-current	(Other long-term liabilities)	$	1,574

Components of lease cost reflected in our consolidated statement of operations for the year ended December 31, 2019 (amounts in thousands):


	December 31, 2019
Operating lease cost	$	656
Short-term lease cost		223
Total lease cost	$	879

A summary of weighted-average remaining lease term and weighted-average discount rate as of December 31, 2019:


Weighted-average remaining lease term	4.1	years
Weighted average discount rate	6.9	%

Supplemental cash flow and other non-cash information for the year ended December 31, 2019 (amounts in thousands):


Operating cash flows from operating leases	$	719
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities		393

Future annual minimum lease commitments as of December 31, 2019 were as follows (amounts in thousands):


	December 31, 2019
2020	$	674
2021		591
2022		473
2023		387
2024		328
Total minimum payments	$	2,453
Less: amount representing interest		(341)
Lease liability	$	2,112

The Company adopted ASU 2016-02 on January 1, 2019 as noted above, and as required, the future annual minimum lease commitments as of December 31, 2018 are provided below (in thousands):


	December 31, 2018
2019	$	1,571
2020		367
2021		350
2022		355
2023		302
Total minimum payments	$	2,945