Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

The Company determines if an arrangement is a lease at inception. The Company leases its facilities and certain office equipment under operating leases which expire on various dates through 2024. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When readily determinable, the Company uses the implicit rate in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Lease Liabilities.  Lease liabilities as of March 31, 2019 consist of the following:

Current portion of lease liabilities	$	1,626
Long term lease liabilities, net of current portion		2,298
Total lease liabilities	$	3,924

The Company’s aggregate lease maturities as of March 31, 2019 are as follows:

Year
2019 (remaining 9 months)	$	1,348
2020		1,332
2021		513
2022		459
2023		472
Thereafter		199
Total minimum lease payments		4,323
Less imputed interest		(399	)
Total lease liabilities	$	3,924

Rent expense included in operating expenses and cost of revenue was $0.5 million for the three months ended March 31, 2019 with a weighted average remaining lease term of 2.3 years and a weighted average discount rate of 5.5%. Rent expense included in operating expenses for the three months ended March 31, 2018 was $0.4 million under ASC 840, the predecessor to ASC 842. In June 2017, the Company subleased one of its buildings to a third party for the remainder of the lease term which expired in February 2019. Rent expense for the three months ended March 31, 2019 and 2018 is net of sublease income of $26,000 and $37,000, respectively. As of March 31, 2019, the Company did not have any additional operating leases that have not yet commenced.