Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

NOTE 3 - LEASES

On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) using the modified retrospective approach for all lease arrangements at the beginning period of adoption. Leases existing for the reporting period beginning January 1, 2019 are presented under ASU 2016-02. The Company leases office space and vehicles under operating leases.

The Company determines if an arrangement is a lease at inception. Operating lease assets are presented as operating lease right-of-use (“ROU”) assets, and corresponding operating lease liabilities are presented within accrued expenses and other current liabilities (current portions), and as operating lease liabilities (long-term portions), on the Company's consolidated balance sheet.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the remaining lease payments over the lease term at commencement date. The Company's leases do not provide an implicit interest rate. The Company calculates the incremental borrowing rate to reflect the interest rate that the Company would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term, and consider the Company's historical borrowing activities and market data in this determination. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components, which the Company accounts for as a single lease component. Some of the Company's leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index updates are recorded as rent expense in the period incurred. The Company has elected not to recognize ROU assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on the Company’s ROU assets and lease liabilities was not material. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, the Company does not have any related party leases and the Company's sublease transactions are de minimis.

As of June 30, 2020, the Company’s ROU assets and lease liabilities for operating leases totaled $869 and $855, respectively.

Supplemental cash flow information related to operating leases was as follows (unaudited):

	As of June 30, 2020
Cash payments for operating leases	$	52

Undiscounted maturities of operating lease payments as June 30, 2020 are summarized as follows (in thousands):

	Operating Leases
2020 (Remainder of the year)	$	132
2021		234
2022		179
2023		173
2024		175
2025		154
Total future lease payments		1,047
Less imputed interest		(192	)
Total lease liability balance	$	855

Leases recorded on the balance sheet consist of the following (in thousands):

	As of June 30, 2020
Assets
Operating lease right of use asset	$	869
Liabilities
Operating lease - current		188
Operating lease - non-current		667
	$	855

	As of June 30, 2020
Operating leases weighted average remaining lease term (in years)		2.5
Operating leases weighted average discount rate		9	%