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, the Company recognized $1.4 million of operating lease liabilities and $1.3 million of operating lease right-of-use assets for its existing operating leases in its balance sheet. As of December 31, 2019, the Company's operating lease liabilities and right-of-use assets were $1.0 million and $0.9 million, respectively. Each of the Company's leases includes options for the Company to extend the lease term and/or sub-lease space in whole or in part.

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



	December 31, 2019
Right-of Use Assets:
Other assets	$	906
Total Right-of-Use Asset	$	906

Operating Lease Liabilities:
Accrued liabilities	$	353
Other long-term liabilities	624
Total Operating Lease Liabilities	$	977

As of December 31, 2019, the weighted average remaining lease term for our operating leases was 1.97 years, and the weighted average discount rate for our operating leases was 9.625%. Future minimum lease payments under the lease agreements as of December 31, 2019 were as follows (in thousands):



Years ended	Operating Leases
2020	$	431
2021	414
2022	239
2023	27
Total lease payments	1,111
Less: Amounts representing interest	(134		)
Present value of lease liabilities	$	977