The Company leases office and warehouse space in Northborough, Massachusetts and East Providence, Rhode Island under operating leases. The Company also leases equipment under operating leases. The Company’s operating leases expire at various dates through 2026. Under these agreements, the Company is obligated to pay annual rent, real estate taxes, and certain other operating expenses.

On January 1, 2019, the Company adopted ASU 2016-02 which modifies the accounting for leases and requires that all leases be recorded on the consolidated balance sheets as assets and liabilities. The Company adopted this standard using the modified retrospective transition approach with the effective date as the date of initial application. As a result, the Company did not update financial information or provide the disclosures otherwise required under the new standard for dates and periods before January 1, 2019. The Company also elected the package of practical expedients under the new standard, which permits the Company to not reassess prior conclusions about lease identification, lease classification, and initial direct costs. In addition, the Company elected the short-term lease recognition exemption under which the Company will not recognize ROU assets or lease liabilities for all leases that qualify. The Company also elected the practical expedient to not separate non-lease components from the associated lease components for all of its equipment leases.

The Company determines if an arrangement is a lease at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s payment obligations under the lease. Operating lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term. To measure its lease liabilities, the Company uses its incremental borrowing rate or the rate implicit in the lease, if available. ROU assets also include any direct costs and prepaid lease payments but exclude any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company elected the short-term lease recognition exemption for all leases that qualify. For leases that qualify for this exemption, the Company will not recognize ROU assets or lease liabilities. For lease agreements with lease and non-lease components, the Company will account for each component separately. However, in the case of equipment leases, the Company will account for lease and non-lease components as a single component.

Prior to the Company’s adoption of ASU 2016-02, the Company recorded the difference between rent expense recognized on a straight-line basis and the contractual payments as deferred rent. Deferred rent consisted of the following at December 31, 2018:

	December 31,
	2018

Deferred rent	$	1,368
Current maturities of deferred rent		(150	)
Deferred rent, less current maturities	$	1,218

Upon adoption of ASU 2016-02 on January 1, 2019, the Company recognized operating lease liabilities of approximately $6.0 million with corresponding ROU assets of approximately $4.6 million. Additionally, the Company derecognized deferred rent liabilities of $1.4 million. Maturities of operating lease liabilities at June 30, 2019 are as follows:

Year	Operating Leases
	(In thousands)
2019 (excluding the six months ended June 30, 2019)	$	757
2020		1,396
2021		1,204
2022		1,122
2023		1,093
Thereafter		1,700
Total lease payments		7,272
Less imputed interest		(1,453	)
Total lease liabilities	$	5,819

The Company incurred operating lease costs of $0.7 million during the six months ended June 30, 2019. Cash payments related to operating lease liabilities were $0.7 million during the six months ended June 30, 2019. At June 30, 2019, the weighted average remaining lease term for operating leases was 5.8 years. At June 30, 2019, the weighted average discount rate for operating leases was 7.8%.

As of June 30, 2019, the Company has additional operating equipment leases with total lease payments of $0.1 million that have not commenced. These operating leases will commence during fiscal year 2019 and have lease terms of four years.