The Company is a lessee in several noncancelable operating leases, primarily for its corporate office, additional office space and certain office equipment. Beginning January 1, 2019, the Company accounts for leases in accordance with ASC Topic 842, Leases. Refer to Note 1. The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a ROU asset and a lease liability at the lease commencement date.

For operating leases, the ROU asset is initially measured at the initial measurement amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the lease incentive received. For operating leases, the ROU asset is subsequently measured at cost, less accumulated amortization, less any accumulated impairment losses. Lease expense is recognized on a straight-line basis over the lease term.

Variable lease payments associated with the Company’s leases are recognized in the period in which the obligation for those payments is incurred. Variable lease payments are presented as operating expense in the Company’s consolidated statement of operations in the same line item as the expense arising from fixed lease payments.

Operating lease ROU assets are presented as Right-of-use-assets within Other assets on the consolidated balance sheet. The current portion of operating lease liabilities is included in other liabilities-current and the long-term portion is included in Other liabilities on the consolidated balance sheet.

The Company has elected not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Company recognizes the lease payments associated with its short-term leases of office space and office equipment as an expense on a straight-line basis over the lease term. The Company’s leases may include non-lease components such as common area maintenance. The Company has elected the practical expedient to account for the lease and non-lease components as a single lease component, therefore, for all of our operating leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract.

The Company’s operating leases expire over the next five years. The Company’s operating leases may contain renewal options however, because the Company is not reasonably certain to exercise these renewal options, the options are not included in the lease term and associated potential option payments are excluded from lease payments. Payments due under the lease contracts include fixed payments and in certain of the Company’s leases, variable payments. Variable lease payments consist of the Company’s proportionate share of the building’s property taxes, insurance, electricity and other common area maintenance costs.

For the twelve months ended December 31, components of lease cost were as follows:

	FY 2019
Operating lease cost	$	2,215
Short-term lease cost		537
Variable lease cost		396
	$	3,148

For FY 2018, minimum rental payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rental expense for operating leases during FY 2018 was approximately $4.0 million

As of December 31, 2019, the operating lease ROU assets and operating lease liabilities were $6.3 million and $8.8 million, respectively.

For FY 2019, cash paid for lease liabilities for operating leases was $2.6 million. Additionally, for FY 2019, the Company recorded $0.1 million of ROU assets and $0.1 million of operating lease obligations for new leases. There were no ROU assets exchanged and no operating lease obligations assumed during the year. In FY 2019, there were no reductions to ROU assets resulting from reductions to lease obligations. In FY 2019, the Company recorded a $0.5 million impairment charge to its ROU assets and a $1.3 million impairment to Leasehold Improvements related to the partial sublet of its New York office space.

Because we generally do not have access to the rate implicit in the lease, the Company utilizes our incremental borrowing rate as the discount rate. As of December 31, 2019, the weighted average remaining operating lease term is 4.17 years and the weighted average discount rate for the operating leases is 8.61%.

Maturities of lease liabilities under non-cancellable leases as of December 31, 2019 are as follows:

	Operating Leases
2020	$	2,610
2021		2,461
2022		2,168
2023		2,109
Thereafter		1,079
Total undiscounted lease payments	$	10,427
Less: Imputed interest		1,594
Total lease liabilities	$	8,833

Future net minimum lease payments under non-cancelable operating lease agreements as of December 31, 2018 under the previous lease accounting standard were as follows:

	Operating Leases
2019	$	2,650
2020		2,726
2021		2,583
2022		2,191
2023		2,109
Thereafter		1,078
Totals	$	13,337