Leases (Tables)

3 Months Ended

Mar. 31, 2021

Classification of Operating ROU Assets and Lease Liabilities on the Balance Sheet

Lease contracts are evaluated at inception to determine whether they contain a lease and whether we obtain the right to control an identified asset. The following table summarizes the classification of operating ROU assets and lease liabilities on the consolidated balance sheets (in thousands):

		As of
Operating Leases	Classification	March 31, 2021		December 31, 2020

Leased Assets
Operating lease - right of use assets	Long term assets	$	1,413	$	1,562

Lease Liabilities
Operating lease liabilities - Current	Other current liabilities		1,121		1,138
Operating lease liabilities	Long term liabilities		1,565		1,831
		$	2,686	$	2,969

Lease Income and Expenses

The table below summarizes lease income and expense recorded in the consolidated statements of operations incurred during three months ended March 31, 2021, (in thousands):

		Three months ended
Lease Cost	Classification	March 31, 2021			March 31, 2020

Operating lease cost ⁽¹⁾	Selling, general and administrative expenses	$	192		$	321
Short-term leases costs ⁽²⁾	Selling, general and administrative expenses		16			1
Sublease income⁽³⁾	Selling, general and administrative expenses		(32	)		(32	)
Net lease cost		$	176		$	290

⁽¹⁾ Includes variable lease costs which are immaterial.

⁽²⁾ Includes leases maturing less than twelve months from the report date.

⁽³⁾Sublease portfolio consists of two tenants, which sublease parts of our principal executive office located at 1332 Londontown Blvd, Suite 200, Sykesville, MD.

Future Minimum Lease Payments

The Company is obligated under certain noncancelable operating leases for office facilities and equipment. Future minimum lease payments under noncancelable operating leases as of March 31, 2021 are as follows (in thousands):

(in thousands)	Gross Future Minimum Lease Payments
2021 remainder	$	941
2022		1,166
2023		631
2024		116
2025		3
Total lease payments	$	2,857
Less: Interest		171
Present value of lease payments	$	2,686

Operating Lease Weighted Average Remaining Lease Term And Discount Rate

We calculated the weighted-average remaining lease term, presented in years below and the weighted-average discount rate for our operating leases. As noted in our lease accounting policy, we use the incremental borrowing rate as the lease discount rate.

Lease Term and Discount Rate	March 31, 2021	December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	2.42	2.64
Weighted-average discount rate
Operating leases	5.00%	5.00%

Classification of Lease Payments in the Statement of Cash Flows

The table below sets out the classification of lease payments in the consolidated statement of cash flows.

(in thousands)	Three months ended
Cash paid for amounts included in measurement of liabilities	March 31, 2021		March 31, 2020

Operating cash flows used in operating leases	$	327	$	339