8.	Operating Leases

The Company currently has

six

operating leases for office and laboratory space used to conduct business (

one

of which is for a data center). The exercise of lease renewal options is at our discretion and the majority of renewals to extend the lease terms are

not

included in our Right-Of-Use (“ROU”) assets and lease liabilities as they are

not

reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do

not

provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

As of

March 31, 2019,

the Company recognized a Right-Of-Use (“ROU”) asset with a corresponding operating lease liability of

$1.6

million based on the present value of the minimum rental payments as a result of adoption of ASC Topic

842.

The weighted average discount rate used for leases as of

March 31, 2019

4.1%.

The weighted average lease term as of

March 31, 2019

2.1

years. The operating lease expense for the

three

months ended

March 31, 2019

was

$260

thousand.

Maturities and balance sheet presentation of our lease liabilities for all operating leases as of

March 31, 2019

is as follows (in thousands):

2019	$	795
2020		623
2021		130
2022		108
2023		18
Total Lease Payments		1,674
Less Interest:		(75	)
Present value of lease liabilities	$	1,599

Current operating lease liabilities	$	950
Long-term operating lease liabilities		649
Total	$	1,599