12. Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

NOTE 12 - Leases

The Company adopted ASU No. 2016-02, “Leases” (Topic 842) on January 1, 2019 and applied the modified retrospective approach to adoption whereby the standard is applied only to the current and future periods. The Company leases manufacturing and office facilities and equipment under operating leases and 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 its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term.

As most of its leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. 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. The Company has lease agreements with lease and non-lease components, which are accounted for separately.

Lease costs consist of the following:

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	134	$	402
Short-term lease cost		6		16
Variable lease cost		31		94
Total lease cost	$	171	$	512

Supplemental cash flow information related to leases was as follows:

	Three Months Ended September 30, 2019		Nine Months  Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows (fixed payments)	$	118	$	354
Operating cash flows (liability reduction)		78		234
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		—		2,840

Other information related to operating leases was as follows:

	September 30, 2019
Weighted average remaining lease term (in years)		7.61
Weighted average discount rate		5.50	%

Maturity of lease liabilities as of September 30, 2019 are as follows:

	September 30, 2019
Remaining three months of 2019	$	118
2020		401
2021		431
2022		439
2023		448
Thereafter		1,379
Total payments		3,216
Less: imputed interest		658
Total liability	$	2,558