NOTE

– Leases:

As discussed in

Note

, on

January 1, 2019,

the Company adopted ASC

842

retrospectively through a cumulative-effect adjustment as permitted under the specific transitional provisions in ASC

842.

Results for reporting periods beginning after

January 1, 2019

are presented under ASC

842,

while prior period amounts have

not

been adjusted and continue to be reported under the accounting standards in effect for the prior period.

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

December 31, 2019

, the Company had recognized

$3.7

million of operating lease liabilities (

$1.3

million in other current liabilities and

$2.4

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

$5.4

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

$3.6

million adjusted for prepaid rent of

$1.8

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):

	Years Ended December 31,
	2019		2018		2017
Rent expense (prior to adoption of ASC 842)	$	-	$	2,149	$	1,147
Operating lease costs		1,541		-		-
Short-term lease costs		302		-		-
Total lease costs, included in selling and administrative expenses	$	1,843	$	2,149	$	1,147

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

	Year Ended December 31, 2019
Operating cash flows – cash paid for operating lease liabilities	$	1,320
Non-cash – Operating lease right-of-use assets obtained in exchange for new lease liabilities	$	782

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

	Year Ended December 31, 2019
Weighted-average remaining lease term (in years)		3.6
Weighted average discount rate		5.61	%

Maturities of operating lease liabilities as of

December 31, 2019

were as follows (in thousands):

	Operating Leases
2020	$	1,397
2021		1,074
2022		872
2023		632
2024		58
Thereafter		61
Total lease payments		4,094
Less imputed interest		367
Present value of lease liabilities	$	3,727