NOTE

– Leases

The Company leases several of its operating and office facilities including factories, warehouses, call centers, office space and equipment for various terms under long-term, non-cancelable operating lease agreements. A right-of-use asset represents the Company’s right to use an underlying asset for the lease term and a lease liability represents the Company’s obligation to make lease payments arising from the lease. These leases generally have expected lease terms of

one

eight

years. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties. Options to renew lease terms are included in determining the right-of-use asset and lease liability when it is reasonably certain that the Company will exercise that option. Certain of the lease agreements include rental payments adjusted periodically for inflation and generally require the Company to pay real estate taxes, insurance, and repairs. The Company’s lease agreements generally do

not

contain any material residual value guarantees or material restrictive covenants. The Company subleases certain insignificant office space to

third

parties. As of

June 30, 2019,

the Company had recognized

$4.1

million of operating lease obligation (

$1.2

million in other current liabilities and

$2.9

million in long-term operating lease liabilities), which represents the present value of the remaining lease payments, and

$4.7

million of operating lease right-of-use assets, which represents the lease liability of

$4.1

million adjusted for the prepaid rent of

$0.7

million. The depreciable-life of right-of-use assets is generally limited by the expected lease term. The Company does

not

have any material leases, individually or in the aggregate, classified as a finance leasing arrangement.

The components of lease cost were as follows (in thousands):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Lease costs:
Operating lease costs	$	397	$	722
Short-term lease costs		97		205
Total lease costs, included in S&A		494		927

Cash flow and noncash information related to our operating leases were as follows (in thousands):

	Six Months Ended June 30, 2019
Operating cash flows - cash paid for operating lease liabilities	$	619
Non-cash - Operating lease ROU assets obtained in exchange for new lease liabilities	$	514

Other supplemental information related to our operating leases was as follows:

	June 30,
	2019
Weighted-average remaining lease term (in years)		3.8
Weighted average discount rate		5.65	%

Maturities of operating lease liabilities as of

June 30, 2019

were as follows (in thousands):

	Operating
	Leases
2019 (six months)	$	671
2020		1,303
2021		979
2022		814
2023		634
Thereafter		123
Total lease payments		4,524
Less imputed interest		462
Present value of lease liabilities	$	4,062