Leases

9 Months Ended

Sep. 30, 2020

10. Leases

The Company leases office space and equipment, and certain office space is subleased. Management determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease.

Operating lease cost consists of the following (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
	(unaudited)
Lease cost	$	558		$	518		$	1,673		$	1,553
Sublease income		(151	)		(151	)		(452	)		(452	)
Total lease cost	$	407		$	367		$	1,221		$	1,101

The maturity of operating lease liabilities is presented in the following table (in thousands):

	As of September 30, 2020
	(unaudited)
2020	$	450
2021		1,785
2022		1,535
2023		1,522
2024		1,182
Thereafter		1,158
Total lease payments		7,632
Less imputed interest		(1,104	)
Present value of lease liabilities	$	6,528

Additional information relating to the Company’s operating leases follows:

	As of September 30, 2020
	(unaudited)
Weighted average remaining lease term (years)		4.70
Weighted average discount rate		6.85	%