Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jun. 30, 2019
Leases [Abstract]  

Note 12 - Leases


Right-of-Use Assets and Leases Obligations


The Company leases office space and office equipment under non-cancelable operating leases, with terms typically ranging from one to three years, subject to certain renewal options as applicable. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of lease liabilities and right-of-use assets. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet.


The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate.


The Company does not separate lease and nonlease components of contracts. There are no material residual value guarantees associated with any of the Company’s leases. There are no significant restrictions or covenants included in the Company’s lease agreements other than those that are customary in such arrangements. 


Lease Position as of June 30, 2019


The table below presents the lease related assets and liabilities recorded on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2019:


(in thousands)   Classification on the Balance Sheet   June 30, 2019  
Operating lease assets   Operating lease right of use assets   $ 1,038  
    Total lease assets   $ 1,038  
Current liabilities:            
Operating lease liabilities   Current operating lease liabilities   $ 493  
Noncurrent liabilities:            
Operating lease liabilities   Long-term operating lease liabilities   $ 545  
    Total lease liabilities   $ 1,038  


Lease cost for the three and six months ended June 30, 2019


The table below presents the lease related costs recorded on the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019:


(in thousands)       Three Months Ended June 30, 2019     Six Months Ended June 30, 2018  
Lease cost   Classification                
Operating lease cost   General and administrative expenses   $ 106     $ 337  
    Total lease cost   $ 106     $ 337  


Other Information


The table below presents supplemental cash flow information related to leases for the six months ended June 30, 2019:


(in thousands)   Six Months Ended
June 30,
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows for operating leases   $ 337  
Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets     1,399  


Lease Terms and Discount Rates


The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for the Company’s operating leases as of June 30, 2019:


    Six Months Ended
June 30,
Weighted average remaining lease term - operating leases     1.40 years  
Weighted average discount rate - operating leases     12.00 %


Undiscounted Cash Flows


The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded on the Condensed Consolidated Balance Sheet as of June 30, 2019:


Amounts due within twelve months of June 30,   Operating Leases  
    (in thousands)  
2019   $ 929  
2020     735  
2021     112  
Total minimum lease payments     1,776  
Less: effect of discounting     (738 )
Present value of future minimum lease payments     1,038  
Less: current obligations under leases     (493 )
Long-term lease obligations   $ 545  


There are no lease arrangements where the Company is the lessor.