Leases

6 Months Ended

Jun. 30, 2019

LEASES

LEASES

5. LEASES

The Company has operating leases for office and warehouse space and certain equipment. In certain of the Company’s lease agreements, the rental payments are adjusted periodically based on defined terms within the lease. The Company did not have any finance leases as of June 30, 2019 and for the six-month period then ended.

Our leases relating to office and warehouse space have terms of 63 months to 122 months. Our leases relating to equipment have lease terms of 60 to 203 months, with some of them having clauses relating to automatic renewal.

The Company’s warehouse agreement also contains non-lease components, in the form of payments towards logistics services and labor charges which the Company is obligated to pay based on the services consumed by it. Such amounts are not included in the measurement of the lease liability but will be recognized as expense when they are incurred.

For the three and six months ended June 30, 2019, the operating lease expense was $726 thousand and $1.4 million, respectively.

Supplemental cash flow information related to the Company’s operating leases were as follows (in thousands):

	Three months ended June 30,		Six months ended June 30,
	2019		2019
Cash paid for amounts included in the measurements of lease liabilities
Operating cash flow from operating leases	$	729	$	1,392
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	-	$	1,490

As of June 30, 2019, the weighted average remaining lease term was 5.2 years and the weighted average discount rate was 3.9%.

The following table presents the maturity of the Company’s operating lease liabilities as of June 30, 2019 (in thousands):

2019 (excluding the six months ended June 30, 2019)	$	1,462
2020		2,951
2021		2,985
2022		2,641
2023		1,665
Thereafter		2,685
Total lease payments	$	14,389
Less: imputed interest		(1,411)
Total	$	12,978

As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, future minimum lease commitments under non-cancelable operating leases with terms in excess of one year would have been as follows (in thousands):

2019	$	1,496
2020		1,528
2021		1,562
2022		1,222
2023		1,155
Thereafter		2,582
Total minimum lease payments	$	9,545