The Company has operating leases for office and warehouse space and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2024.

Certain of the Company’s lease arrangements contain renewal provisions, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is an operating lease at inception. All other leases are recorded on the balance sheet with right-of-use (“ROU”) assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease.

ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. As most of our leases do not provide an implicit rate, the present value of lease payments is determined primarily using our incremental borrowing rate based on the information available at the lease commencement date. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term. Operating lease cost was $1.1 million for the twelve-months ended December 31, 2019. For the twelve months ended December 31, 2019, $0.4 million was included in cost of goods sold and $0.7 million was included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

Twelve months ended

December 31, 2019

Operating lease cost

1,121

Operating lease - cash flow

1,099

	December 31, 2019
Weighted-average remaining lease term	4.0 years
Weighted-average discount rate		5	%

Future minimum lease payments under non-cancellable leases as of December 31, 2019:

2020	$	1,108
2021		736
2022		467
2023		462
2024		278
Thereafter		295

Total future minimum lease payments	$	3,345
Less : imputed interest		(337	)
Less : present value of lease liabilities - current		(1,047	)
Present value of lease liabilities - non-current	$	1,962