NOTE

– Leases

The Company primarily leases 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. As of

September 30, 2019

, the Company had recognized

$4.0

million of operating lease obligation (

$1.4

million in other current liabilities and

$2.6

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

$4.6

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

$4.0

million adjusted for prepaid rent of

$0.6

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 September 30, 2019		Nine Months Ended September 30, 2019
Operating lease costs	$	380	$	1,103
Short-term lease costs		51		255
Total lease costs, included in selling and administrative expenses	$	431	$	1,358

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

	Nine Months Ended September 30, 2019
Operating cash flows – cash paid for operating lease liabilities	$	958
Non-cash – Operating lease ROU assets obtained in exchange for new lease liabilities	$	729

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

	September 30,
	2019
Weighted-average remaining lease term (in years)		3.6
Weighted average discount rate		5.67	%

Maturities of operating lease liabilities as of

September 30, 2019

were as follows (in thousands):

	Operating
	Leases
Remainder of 2019	$	356
2020		1,377
2021		1,054
2022		859
2023		632
Thereafter		120
Total lease payments		4,398
Less imputed interest		425
Present value of lease liabilities	$	3,973