Lease Commitments

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

(7) Lease Commitments

 The Company's operating lease portfolio is comprised of operating leases for office, warehouse space and equipment. Certain of the Company's leases include one or more options to renew or terminate the lease at the Company's discretion. The Company regularly evaluates the renewal and termination options and when they are reasonably certain of exercise, includes the renewal or termination option in our lease term.

The adoption of Topic 842 resulted in the Company recognizing operating lease liabilities totaling $2,556 with a corresponding right-of-use (“ROU”) asset of $2,212 based on the present value of the minimum rental payments of such leases. The variance between the ROU asset balance and the lease liability is deferred rent liability that existed prior to the adoption of the ASC 842 and was offset against the ROU asset balance during the adoption. As of December 31, 2019, the ROU asset had a balance of $2,119 which is included in the “Operating lease right-of-use assets” line item of these consolidated financial statements and current and non-current lease liabilities related to the ROU asset of $357 and $2,035, respectively, and are included in the “Current portion of operating lease obligations” and “Long-term portion of operating lease obligations” line items of these consolidated financial statements. The discount rates used for leases accounted for under ASC 842 are based on an interest rate yield curve developed for the leases in the Company’s portfolio.

The office leases contain variable lease payments which consist primarily of rent escalations based on an established index or rate and taxes, insurance, and common area or other maintenance costs, which are paid based on actual costs incurred by the lessor. The Company has elected to utilize the available practical expedient to not separate lease and non-lease components.

Quantitative information regarding the Company’s leases is as follows:

	Twelve Months Ended December 31, 2019
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	69
Interest on finance lease liabilities		56
Total finance lease costs		125
Operating lease cost components:
Operating lease cost		515
Variable lease cost		108
Short-term lease cost		68
Total operating lease costs		691
Total financing and operating lease cost components:	$	816

Supplemental cash flow information related to leases is as follows for the year ended December 31, 2019:

	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	694
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	205
Weighted-average remaining lease term-finance leases (in years)		1.9
Weighted-average remaining lease term-operating leases (in years)		3.0
Weighted-average discount rate-finance leases		9.1	%
Weighted-average discount rate-operating leases		14.5	%

The future maturities of the Company’s finance and operating leases as of December 31, 2019 are as follows: 

	Finance Leases			Operating Leases			Total
2020	$	255		$	676		$	931
2021		196			687			883
2022		109			705			814
2023		5			690			695
2024		—			580			580
Thereafter		—			—			—
Total payments	$	565		$	3,338		$	3,903
Less amounts representing interest		(59	)		(946	)		(1,005	)
Total minimum payments required:	$	506		$	2,392		$	2,898

The following is a schedule of future minimum lease payments including real estate taxes as required under the above operating leases, as well as the remaining lease payments under capital leases as referenced below as of December 31, 2018:

	Operating		Capital
Year ending December 31:	Leases		Leases
2019	$	689	$	274
2020		587		255
2021		554		196
2022		420		109
2023		430		5
Thereafter		440		—
Total payments		3,120		839
Less amounts representing interest		—		(115	)
Total minimum payments required:	$	3,120	$	724