As of July 1, 2019, the Company adopted Topic 842, using the modified retrospective method of adoption. Astrotech elected to use the transition option that allows the Company to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. Comparable periods continue to be presented under the guidance of the previous standard, Accounting Standards Codification (“ASC”) Topic 840. Topic 842 requires lessees to recognize a lease liability and ROU asset on the balance sheet for operating leases. The adoption of Topic 842 resulted in an adjustment to retained earnings of $230 thousand.

The Company has two existing facility leases and several small equipment leases. Astrotech leases office space consisting of 5,219 square feet in Austin, Texas and houses executive management, finance and accounting, and marketing and communications. The lease began in November 2016 and expires in December 2023 with a provision to renew and extend the lease for the entire premises for one renewal term of five years. Astrotech must, in writing, advise the landlord of its intention to renew the lease at least eight months before the expiration of its current lease in order to renew the lease. In May 2013, 1^st Detect completed build-out of a 16,540 square foot leased research and development and production facility in Webster, Texas. This facility is equipped with state-of-the-art laboratories, a clean room, a production shop, and offices for staff. The term of the lease is 62 months and includes options to extend for two additional five-year periods. In February 2015, 1^st Detect exercised its right of first refusal on the adjoining space of 9,138 square feet. The original lease began in May 2013 and was to expire in June 2018; these dates were amended in October 2014 with the amended lease beginning February 1, 2015, and expiring April 30, 2020, with provisions to renew and extend the lease for the entire premises, but not less than the entire premises, for two renewal terms of five years each. On June 1, 2018, the Company entered into its third amendment of the original lease removing 8,118 square feet from its leased space, leaving leased premises with a total square footage of 17,560. The Company included the assumption that 1^st Detect will occupy comparable space to its current location with a new five-year lease in its calculations for adopting Topic 842. The Company has not entered into any financing leases.

Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate used at adoption was 11%. Significant judgement is required when determining the Company’s incremental borrowing rate. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The condensed consolidated balance sheet classification of lease assets and liabilities are as follows:

(In thousands)
Assets	September 30, 2019
Operating lease right-of-use assets, beginning balance	$	1,608
Current period amortization		(81	)
Total operating lease right-of-use asset	$	1,527

(In thousands)
Liabilities	September 30, 2019
Operating lease liabilities - current	$	237
Operating lease liabilities - non-current		1,304
Total lease liabilities	$	1,541

Future minimum lease payments as of September 30, 2019 under non-cancellable operating leases are as follows:

(In thousands)
For the Year Ended June 30,	September 30, 2019
2020	$	292
2021		414
2022		425
2023		434
2024		258
Thereafter		188
Total lease payments		2,011
Less: imputed interest		470
Operating lease liability		1,541
Less: operating lease liabilities - current		237
Operating lease liabilities - non-current	$	1,304

Cash payments for operating leases for the three months ended September 30, 2019 totaled $96 thousand. The weighted-average remaining lease term for operating leases is 5.1 years.