Leases (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Supplemental Balance Sheet Information Related to Leases

The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the condensed consolidated statements of financial condition.

	As of September 30, 2019 (unaudited)		As of December 31, 2018
Assets
Lease right-of-use assets	$	2,501,000		—
Liabilities
Lease liabilities	$	2,817,000		—

Schedule of Additional Information Related to Leases

The Company determined a discount rate of 5.0% would approximate the Company’s cost to obtain financing given its size, growth, and risk profile.

Lease Term and Discount Rate
Weighted average remaining lease term – operating leases (in years)	3.5
Weighted average discount rate – operating leases	5.0%

Schedule of Lease Costs and Other Lease Information

The following table represents lease costs and other lease information. The Company has elected the practical expedient to not separate lease and non-lease components, and as such, the variable lease cost primarily represents variable payments such as common area maintenance and utilities which are determined by the leased square footage in proportion to the overall office building.

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	294,000	$	624,000
Short-term lease cost		81,000		321,000
Variable lease cost		5,000		50,000
Sublease income		—		—
Total lease cost	$	380,000	$	995,000

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	275,000	$	632,000

Lease right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	813,000	$	3,028,000

Schedule of Maturities of Lease Liabilities

Future annual minimum payments for operating leases with initial terms of greater than one year as of September 30, 2019 were as follows:

Year	Amount
2019	$	259,000
2020		992,000
2021		759,000
2022		513,000
2023		493,000
2024		56,000
Thereafter		—
Remaining balance of lease payments		3,072,000
Difference between undiscounted cash flows and discounted cash flows		255,000
Lease liabilities	$	2,817,000