Leases

9 Months Ended

Sep. 30, 2020

Leases

Leases

Note 12. 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. Lease cost is recorded in selling, general, and administrative expense in the accompanying Condensed Consolidated Statement of Operations. Total lease cost was $0.2 million for each of the three months ended September 30, 2020 and 2019. Total lease cost was $0.6 million and $0.7 million for the nine months ended September 30, 2020 and 2019, respectively. Leases with a term of one year or less are classified as short-term and are not recognized in the Condensed Consolidated Balance Sheets.

A summary of the classification of operating leases on our Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (amounts in thousands):

		September 30,			December 31,
		2020			2019
Operating lease right-of-use assets		$	1,955	$	1,833
Operating lease liability, current	(Other accrued expenses)		595		538
Operating lease liability, non-current	(Other long-term liabilities)	$	1,527	$	1,574

Components of lease cost reflected in our Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2020 and 2019 (amounts in thousands):

	Three months ended September 30,
	2020		2019
Operating lease cost	$	168	$	172
Short-term lease cost		6		65
Total lease cost	$	174	$	237

	Nine months ended September 30,
	2020		2019
Operating lease cost	$	488	$	488
Short-term lease cost		92		175
Total lease cost	$	580	$	663

A summary of weighted-average remaining lease term and weighted-average discount rate as of September 30, 2020:

Weighted-average remaining lease term	3.9	years
Weighted average discount rate	6.3	%

Supplemental cash flow and other non-cash information for the nine months ended September 30, 2020 and 2019 (amounts in thousands):

	Nine months ended September 30,
	2020		2019
Operating cash flows from operating leases	$	444	$	428
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities		541		393

Future annual minimum lease commitments as of September 30, 2020 were as follows (amounts in thousands):

	September 30, 2020
Remainder of 2020	$	150
2021		714
2022		614
2023		494
2024		427
Total minimum payments	$	2,399
Less: amount representing interest		(277)
Lease liability	$	2,122