Leases

3 Months Ended

Mar. 31, 2020

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)	Three months ended March 31, 2020		Three months ended March 31, 2019
Operating leases	$	606	$	601
Short-term leases⁽¹⁾	87		31
Total lease expense	$	693	$	632

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


Other information on operating leases	Three months ended March 31, 2020			Three months ended March 31, 2019
Cash payments included in operating cash flows	$	521		$	585
Right-of-use assets obtained in exchange for new lease	$	21		$	33
Weighted average discount rate	9.33		%	9.21		%
Weighted average remaining lease term in years	5.30 years			5.83 years

The following table presents the contractual maturities of the Company's lease liabilities as of March 31, 2020:


(in thousands)	Lease Liability
Remainder of 2020	$	1,378
2021	1,771
2022	1,518
2023	1,273
2024 and thereafter	2,374
Total undiscounted lease payments	$	8,314
Less: present value adjustment	1,971
Operating lease liability	$	6,343

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


(in thousands)	Future lease Payments
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