Operating Leases

The Company has operating leases for two offices with terms that expire in 2022 and 2023. In addition, the Company pays for facility space through a third-party manufacturing contract that contains an embedded operating lease, with an estimated expiration in 2020. The Company estimates its incremental borrowing rate, at lease commencement, to determine the present value of lease payments, since most of the Company's leases do not provide an implicit rate of return. The Company recognizes lease expense on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, the Company elected to account for non-lease components associated with its leases and lease components as a single lease component. Upon adoption of Topic 842 on January 1, 2019, we recognized $1.4 million of operating lease liabilities and $1.3 million of operating lease right-of-use assets for our existing operating leases in our balance sheet. As of March 31, 2019, our operating lease liabilities and right-of-use assets were $1.3 million and $1.2 million, respectively. Each of our leases include options for us to extend the lease term.

Operating lease liabilities and right-of-use assets were recorded in the following captions of our balance sheet were as follows (in thousands):



	March 31, 2019
Right-of Use Assets:
Other assets	$	1,184
Total Right-of-Use Asset	$	1,184

Operating Lease Liabilities:
Accrued liabilities	$	396
Other long-term liabilities	868
Total Operating Lease Liabilities	$	1,264

As of March 31, 2019, the weighted average remaining lease term for our operating leases was 2.7 years, and the weighted average discount rate for our operating leases was 9.625%. Future minimum lease payments under the lease agreements as of March 31, 2019 were as follows (in thousands):



Years ended	Operating Leases
2019	$	428
2020	403
2021	411
2022	236
2023	27
Total lease payments	1,505
Less: Amounts representing interest	(241		)
Present value of lease liabilities	$	1,264