Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

7. LEASES

Finance lease assets are included in fixed assets, net of accumulated depreciation.

The table below presents the lease-related assets and liabilities recorded in the Condensed Consolidated Balance Sheet:

	Classification on the Balance Sheet	June 30, 2020
			(unaudited)
Assets
Financing lease assets	Property and equipment, net	$	528
Operating lease assets	Operating lease right of use assets		5,172
Total lease assets		$	5,700
Liabilities
Current
Financing lease liabilities	Other accrued expenses	$	150
Operating lease liabilities	Other accrued expenses		1,171
Total current lease liabilities		$	1,321
Noncurrent
Financing lease liabilities	Other long-term liabilities		57
Operating lease liabilities	Operating lease liabilities, net of current portion		3,940
Total long-term lease liabilities			3,997
Total lease liabilities		$	5,318

The weighted average remaining lease term for the Company’s operating leases was 7.1 years as of June 30, 2020 and the weighted average discount rate for those leases was 6.0%. The Company’s operating lease expenses are recorded within “Cost of revenue” and “General and administrative expenses.” With respect to the Rutherford lease, in March 2020 the Company delivered a notice of early termination which would terminate the lease in March 2021.

In June 2020, the Company entered into an amendment of its North Carolina lease extending it for an additional ten years, commencing on June 1, 2020 and continuing until May 31, 2030. The minimum rent per rentable square foot pursuant to the amendment is $14.10 from June 1, 2020 to May 31, 2021, with annual increases of 3%. Pursuant to the amendment, the Company has two options to extend the term for a period of five years each. Also pursuant to the amendment, the Company has the irrevocable right to terminate the lease on November 30, 2025, as well as on November 30, 2027.

The table below reconciles the cash flows to the lease liabilities recorded on the Company’s Condensed Consolidated Balance Sheet as of June 30, 2020:

	Operating Leases		Financing Leases
2020		991		98
2021		1,235		120
2022		1,028		13
2023		629		-
2024-2030		2,717
Total minimum lease payments		6,600		231
Less: amount of lease payments representing effects of discounting		1,489		24
Present value of future minimum lease payments		5,111		207
Less: current obligations under leases		1,171		150
Long-term lease obligations	$	3,940	$	57

As of June 30, 2020, contractual obligations with terms exceeding one year and estimated minimum future rental payments required by non-cancelable operating leases with initial or remaining lease terms exceeding one year were as follows:

			Less than		1 to 3		3 to 5		After
	Total		1 Year		Years		Years		5 Years
Operating lease obligations	$	6,600	$	991	$	2,263	$	1,020	$	2,326
Total	$	6,600	$	991	$	2,263	$	1,020	$	2,326