The Company is a lessee in several noncancelable operating leases, primarily for its corporate office, additional office space and certain office equipment. Beginning January 1, 2019, the Company accounts for leases in accordance with ASC Topic 842, Leases. Refer to Note 20. The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right of use (ROU) asset and a lease liability at the lease commencement date.

For operating leases, the ROU asset is initially measured at the initial measurement amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the lease incentive received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense is recognized on a straight-line basis over the lease term.

Variable lease payments associated with the Company’s leases are recognized in the period in which the obligation for those payments is incurred. Variable lease payments are presented as operating expense in the Company’s condensed consolidated statement of operations in the same line item as expense arising from fixed lease payments.

Operating lease ROU assets are presented as operating lease right of use assets within non-current assets on the consolidated balance sheet. The current portion of operating lease liabilities is included in other current liabilities and the long-term portion is included in other liabilities on the consolidated balance sheet.

The Company has elected not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Company recognizes the lease payments associated with its short-term leases of office space and office equipment as an expense on a straight-line basis over the lease term. The Company’s leases may include nonlease components such as common area maintenance. The Company has elected the practical expedient to account for the lease and nonlease components as a single lease component, therefore, for all of our operating leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract.

The Company’s operating leases expire over the next five years. The Company’s operating leases may contain renewal options however, because the Company is not reasonably certain to exercise these renewal options, the options are not included in the lease term and associated potential option payments are excluded from lease payments. Payments due under the lease contracts include fixed payments and in certain of the Company’s leases, variable payments. Variable lease payments consist of the Company’s proportionate share of the building’s property taxes, insurance, electricity and other common area maintenance costs.

	Three Months Ended March 31, 2019
Operating lease cost	$	549
Short-term lease cost		127
Variable lease cost		159
	$	835

For the Prior Year Quarter, minimum rental payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rental expense for operating leases during the Prior Year Quarter amounted to $0.9 million.

As of March 31, 2019, the operating lease ROU assets and operating lease liabilities were $7.8 million and $10.1 million, respectively.

For the Current Quarter, cash paid for lease liabilities for operating leases was $0.6 million. Additionally, for the Current Quarter, the Company obtained a ROU asset of $0.1 million exchanged for operating lease obligations of $0.1 million. In the Current Quarter, there were no reductions to ROU assets resulting from reductions to lease obligations.

Because we generally do not have access to the rate implicit in the lease, the Company utilizes our incremental borrowing rate as the discount rate. As of March 31, 2019, the weighted average remaining operating lease term is 4.88 years and the weighted average discount rate for the operating leases is 8.61%.

Maturities of lease liabilities under non-cancellable leases for the Current Quarter are as follows:

	Operating Leases
Remainder of 2019	$	1,889
2020		2,603
2021		2,456
2022		2,166
2023		2,109
Thereafter		1,078
Total undiscounted lease payments	$	12,301
Less: Imputed interest		2,246
Total lease liabilities	$	10,055

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments under non-cancellable leases were as follows:

	Operating Leases
2019		2,650
2020		2,726
2021		2,583
2022		2,191
2023		2,109
Thereafter		1,078
	$	13,337