Note 9.

Leases

The Company has identified two operating lease agreements, each for the use of office space in the ordinary course of business. The first lease renews annually on an automatic basis and based on original assumptions, management is reasonably certain to exercise the renewal option for an additional eight years from the January 1, 2019 effective date of the new lease guidance. The original term of the second lease was ten years and amended in January 2017 to provide for an additional seven years, with a termination date on September 30, 2026. The rate used in determining the present value of lease payments is based upon an estimate of the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. Lease expense reported for the six months ended June 30, 2019 was $507. See the “Adoption of New Accounting Standards – Leases” section of Note 2 of Notes to Condensed Consolidated Financial Statements for additional information regarding the accounting for leases.

Additional information regarding the Company’s real estate operating leases is as follows:

	Six Months Ended June 30,
	2019
Other information on operating leases:
Cash payments included in the measurement of lease liabilities reported in operating cash flows	$	450
Right-of-use assets included in other assets on the condensed consolidated balance sheet		5,785
Weighted average discount rate		6.8	%
Weighted average remaining lease term in years	7.4 years

The following table presents maturities and present value of the Company’s lease liabilities:

	Lease Liability
Remainder of 2019	$	365
2020		978
2021		1,015
2022		1,031
2023		1,048
Thereafter		3,091
Total undiscounted lease payments		7,528
Less: present value adjustment		1,685
Operating lease liability included in other liabilities on the condensed consolidated balance sheet	$	5,843

As of June 30, 2019, the Company has no operating leases that have not yet commenced.