In February 2016, the FASB issued ASU 2016-02, ASC 842 Leases to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). On January 1, 2019, the Company adopted the accounting pronouncement issued using the modified retrospective method. The Company elected the “package of practical expedients” permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company elected not to utilize the hindsight practical expedient to determine the lease term for existing leases. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company did not recognize right-of-use assets or lease liabilities, including not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components. Adoption of the new standard resulted in the recording of additional operating right-of-use assets and operating lease liabilities of approximately $4.3 million and $4.3 million, respectively, as of January 1, 2019. The adoption of this standard did not impact the Company’s retained earnings liquidity, results of operations or its compliance with its debt covenants. The Company modified existing controls and processes to support the adoption of the new lease accounting standard that the Company adopted as of January 1, 2019.

From time to time, the Company enters into leases primarily for the electrical construction operation’s equipment needs and to a lesser extent office facilities. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of equipment rather than purchasing them. The Company’s leases have remaining terms ranging from months to seven years, some of which may include options to extend the lease term. Currently, all of the Company’s leases contain fixed payment terms. Additionally, all of our month-to-month leases are cancelable by the Company, at any time and are not included in our right-of-use asset or liability. At June 30, 2019, the Company had no leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive.

The Company currently does not have any leases that are classified as financing leases under ASC 842 Leases.

Operating right-of-use leases are reported under “Right of use assets,” on the Company’s consolidated balance sheet. The current portion operating lease liabilities are reported under “Current portion of lease liability” and the non-current portion is reported under “Other accrued liabilities,” respectively on the Company’s consolidated balance sheet. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate to calculate present value, the Company determines this rate, by estimating the Company’s incremental borrowing rate, at the lease commencement date. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

The following table presents a summary of the Company’s lease assets and lease liabilities as of June 30, 2019:

	Classification	June 30, 2019
Lease Assets
Operating lease assets	Right of use assets	$	5,934,791

Lease Liabilities
Current operating lease liabilities	Current portion of lease liability	$	2,659,377
Non-current operating lease liabilities	Other accrued liabilities		3,255,934
Total lease liabilities		$	5,915,311

The total weighted-average discount rate and remaining lease term for the Company’s operating leases was 4.25% and 4.60 years, respectively, as of June 30, 2019. Operating lease costs for the three and six months ended June 30, 2019 were $0.8 million and $2.0 million, respectively and approximate the cash payments for these periods.

The following table presents the Company’s maturity analysis of its operating lease liabilities as of June 30, 2019:

	June 30, 2019
2019	$	1,767,905
2020		1,435,657
2021		643,760
2022		640,853
2023 and beyond		2,039,190
Total lease payments	$	6,527,365
Less: interest		(612,054	)
Present value of lease liabilities	$	5,915,311

The following table provides the future minimum lease payments under operating leases having initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018:

	December 31, 2018
2019	$	3,613,980
2020		910,778
2021		88,469
2022 and beyond		114,466
Total minimum operating lease payments	$	4,727,693