Leases

Adoption

Effective January 1, 2019, the Company adopted the new lease accounting standard, ASC 842, Leases, using the modified retrospective method of applying the new standard at the adoption date. In addition, the Company elected to apply the package of practical expedients permitted under the transition guidance within the new standard. This allowed the Company to carry forward historical lease classification. Adoption of this standard resulted in the recording of operating lease right-of-use (ROU) assets and corresponding operating lease liabilities of approximately $4.0 million. The Company's financial position for reporting periods beginning on or after January 1, 2019 are presented under the new guidance, while prior periods amounts are not adjusted and continue to be reported in accordance with previous guidance.

A significant portion of our operating and finance lease portfolio includes corporate offices, research and development, information technology (IT) equipment, and automobiles. The majority of our leases have remaining lease terms of 1 year to 5 years. Substantially all lease expense is presented within selling, general and administrative in the consolidated statements of operations.



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Operating lease cost	$	302	$	251	$	848	$	708
Total lease cost	$	302	$	251	$	848	$	708

Supplemental cash flow information related to leases for the second quarter was as follows:

Supplemental balance sheet information related to leases for the second quarter was as follows:



	June 30, 2019
Operating leases
Operating lease right-of-use assets	$	3,323
Operating lease liabilities - current portion	1,206
Operating lease liabilities - net of current portion	2,153
Total operating lease liabilities	$	3,359
Weighted-average remaining lease term
Operating leases	3.9 years
Weighted-average discount rate
Operating leases	4		%

Future minimum lease payments are as follows:



	Operating Leases
2019	$	833
2020	1,034
2021	762
2022	582
2023	578
Thereafter	75
Total lease payments	3,864
Less: interest	(505		)
Total	$	3,359

Three Months Ended
June 30, 2019

Six Months Ended
June 30, 2019

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases