LEASES

6 Months Ended

Jun. 30, 2020

Leases

LEASES

7. LEASES

The Company leases facilities and certain equipment under noncancelable leases that expire at various dates through November 2024. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases may include options to extend or terminate the lease at the election of the Company. These optional periods have not been considered in the determination of the right-of-use-assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options.

As of June 30, 2020, the maturities of our operating and finance lease liabilities were as follows (in thousands):

	Operating leases			Finance leases
2020 (excluding the six months ended June 30, 2020)	$	948		$	335
2021		1,646			656
2022		1,345			405
2023		132			336
2024		87			42
Total lease payments		4,158			1,774
Less imputed interest		(452	)		(242	)
Total lease liabilities	$	3,706		$	1,532

Supplemental balance sheet information related to leases was as follows (in thousands):

Finance leases

	June 30, 2020		December 31, 2019
Finance lease right-of-use assets included within property and equipment, net	$	1,631	$	2,177
Current finance lease liabilities included within other current liabilities	$	532	$	508
Non-current finance lease liabilities included within other long-term liabilities		1,000		1,267
Total finance lease liabilities	$	1,532	$	1,775

Operating leases

	June 30, 2020		December 31, 2019
Current operating lease liabilities included within other current liabilities	$	1,514	$	1,746
Operating lease liabilities – non current		2,192		2,994
Total operating lease liabilities	$	3,706	$	4,740

The components of lease expense were as follows (in thousands):

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Operating lease costs included within operating costs and expenses	$	548	$	546	$	1,104	$	1,061
Finance lease costs:
Amortization of right-of-use assets	$	174	$	170	$	349	$	309
Interest on lease liabilities		39		44		82		67
Total	$	213	$	214	$	431	$	376

Supplemental cash flow information related to leases was as follows (in thousands):

	For the Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash out flows from operating leases	$	1,108	$	941
Operating cash out flows from finance leases	$	82	$	67
Financing cash out flows from finance leases	$	243	$	225
Lease liabilities arising from obtaining right-of-use assets:
Finance leases	$	–	$	1,824
Lease payments made in prior period reclassified to property and equipment	$	–	$	535
Remeasurement of finance lease liability due to lease modification	$	–	$	(22	)
Operating leases	$	–	$	939
Remeasurement of operating lease liability due to lease modification	$	131	$	–

As of June 30, 2020 and December 31, 2019, the weighted average remaining lease term for operating leases was 2.5 and 2.8 years, respectively, and the weighted average discount rate used for operating leases was 9.76% and 9.83%, respectively. As of June 30, 2020 and December 31, 2019, the weighted average remaining lease term for finance leases was 3.0 and 3.5 years, respectively, and the weighted average discount rate used for finance leases was 9.77% for both periods. In May 2020, the Company reduced office space related to one of its existing lease agreements resulting in lower monthly payments.