Leases

12 Months Ended

Dec. 31, 2019

The Company enters into lease agreements for certain facilities and vehicles that are primarily used in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease.

Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Company's discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. The Company, in determining the present value of lease payments, uses the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

Lease expense is primarily included in general and administrative expenses in the condensed consolidated statements of operations. Additional information regarding the Company's operating leases is as follows:


(in thousands)	Year ended December 31, 2019
Operating Lease Cost
Operating leases	$	2,409
Short-term leases⁽¹⁾	90
Total lease expense	$	2,499

(1) Leases with an initial term of twelve months or less are not recorded on the balance sheet.

Other information on operating leases:


Cash payments included in operating cash flows	2,312
Right-of-use assets obtained in exchange for new lease	401
Weighted average discount rate	9.34	%
Weighted average remaining lease term in years	5.40 years

The following table presents the contractual maturities of the Company's lease liabilities as of December 31, 2019:


(in thousands)	Lease Liability
2020	$	1,939
2021	1,670
2022	1,509
2023	1,294
2024 and thereafter	2,380
Total undiscounted lease payments	$	8,792
Less: present value adjustment	1,960
Operating lease liability	$	6,832

The following table presents the future minimum lease payments as of December 31, 2018 under noncancellable operating leases:


(in thousands)			Future Lease Payments
2019			3,413
2020			2,058
2021			1,790
2022			1,640
2023			1,242
2024 and thereafter			2,396
Total undiscounted lease payments			12,539