(

)

LEASES

We lease printing equipment in the United States, and office space in Canada, California, Georgia, Washington, and Tennessee. The leases remaining terms as of

September 30, 2019

range from less than

one

year to

5.9

years.

Certain equipment and office lease agreements include provisions for periodic adjustments to rates and charges. The rates and charges are adjusted based on actual usage or actual costs for internet, common area maintenance, taxes or insurance, as determined by the lessor and are considered variable lease costs.

The components of lease expense for the

three

and

nine

-month periods ended

September 30, 2019

included:

	Three months ended September 30, 2019		Nine months ended September 30, 2019
	(In thousands)
Operating leases	$	196	$	601
Finance leases:
Asset amortization		65		189
Interest on lease liabilities		11		31
Variable lease cost		29		72
Short-term lease cost		10		29
Total net lease cost	$	311	$	922

Supplemental balance sheet information related to leases (in thousands):

	September 30, 2019		January 1, 2019
Operating leases:
Operating ROU assets	$	1,805	$	2,308	(1)

Current operating lease liabilities		589		699	(1)
Noncurrent operating lease liabilities		1,248		1,652	(1)
Total operating lease liabilities	$	1,837	$	2,351	(1)

(

) Represents the

December 31, 2018

balance recorded at implementation of Topic

842

	September 30, 2019			December 31, 2018
Finance leases:
Furniture and equipment	$	1,095		$	1,062
Computer Equipment		551			487
Computer Software		224			224
Property and equipment under finance lease, gross		1,870			1,773
Less accumulated amortization		(959	)		(839	)
Property and equipment under finance lease, net	$	911		$	934

Current obligations of finance leases	$	235		$	204
Noncurrent obligations of finance leases		629			676
Total finance lease liabilities	$	864		$	880

Weighted average remaining lease term (in years):
Operating leases		4.22
Finance leases		3.77

Weighted average discount rate:
Operating leases		4.81	%
Finance leases		4.68	%

Supplemental cash flow and other information related to leases was as follows (in thousands):

	Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	601
Operating cash flows from finance leases		31
Financing cash flows from finance leases		223

ROU assets obtained in exchange for operating lease liabilities		16
ROU assets obtained in exchange for finance lease liabilities		206

Undiscounted payments under non-cancelable operating leases and finance leases at

September 30, 2019

are as follows (in thousands):

	Finance Leases			Operating Leases
Remainder 2019	$	70		$	191
2020		263			597
2021		257			452
2022		208			225
2023		125			246
Thereafter		13			321
Total minimum lease payments		936			2,032
Less: Amount representing interest		(72	)		(195	)
Present value of minimum lease payments		864			1,837
Less: Current maturities		(235	)		(589	)
Lease obligations, net of current portion	$	629		$	1,248

Undiscounted payments under non-cancelable operating leases and finance leases at

December 31, 2018

were as follows (in thousands):

Year Ending December 31,	Finance Leases			Operating Leases
2019	$	258		$	882
2020		241			672
2021		214			564
2022		168			273
2023		85			262
Total minimum lease payments		966
Less: Amount representing interest		(86	)
Present value of minimum lease payments		880
Less: Current maturities		(204	)
Capital lease obligations, net of current portion	$	676