The Company has entered operating leases to facilitate the expansion of its manufacturing, research and development, and general and administrative activities. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when those events are reasonably certain to occur. The interest rate implicit in lease contracts is typically not readily determinable and as such the Company uses the appropriate incremental borrowing rate based on information available at the lease commencement date in determining the present value of the lease payments. The Company used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. Current lease agreements do not contain any residual value guarantees or material restrictive covenants. As of September 30, 2019, the Company did not have any finance leases and no additional operating leases that have not yet commenced.

As stated in Note 2, effective January 1, 2019, the Company adopted ASC Topic 842 using the modified retrospective transition method. As such, the Company did not restate financial statement or lease disclosure data for periods prior to January 1, 2019, which was prepared in accordance with ASC Topic 840 – Leases.

The following table presents the Company’s operating lease cost and supplemental cash flow information related to the Company’s operating leases (in thousands):

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Operating lease cost	$	456	$	1,316
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	1,503	$	9,776

As of September 30, 2019, current operating leases had remaining terms between 1 and 9 years with options to extend the lease terms and the Company had operating lease right-of-use assets of $8.8 million, current operating lease liabilities of $1.7 million and long-term operating lease liabilities of $7.1 million.

The following table presents weighted average assumptions used to compute the Company’s right-of-use assets and lease liabilities:

	September 30, 2019
Weighted average remaining lease term (in years)		7.5
Weighted average discount rate		5.5	%

Undiscounted future minimum lease payments as of September 30, 2019, by year and in the aggregate, having non-cancelable lease terms in excess of one year were as follows (in thousands):

	Maturities of Operating Lease Liabilities
2019 ⁽¹⁾	$	517
2020		1,932
2021		1,252
2022		1,183
2023		1,044
Thereafter		4,829
Total lease payments		10,757
Less imputed interest		(1,969	)
Present value of lease payments	$	8,788

Future minimum lease payments as of December 31, 2018, by year and in the aggregate, having non-cancelable lease terms in excess of one year were expected to be as follows (in thousands):

	Total Minimum Lease Payments
2019	$	1,652
2020		1,512
2021		833
2022		833
2023		833
Thereafter		4,721
Total lease payments	$	10,384