Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

9 Months Ended

Sep. 30, 2019

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.

On August 1, 2019, we entered into a new non-cancelable 36-month operating lease agreement for an office space in our UK segment. As a result of this agreement, we recognized a right of use asset and lease payable obligation in our Condensed Consolidated Balance Sheets of approximately $0.6 million, respectively.

Lease Position as of September 30, 2019

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

(in thousands)	Classification on the Balance Sheet	September 30, 2019
Assets
Operating lease assets	Operating lease right of use assets	$	1,788
	Total lease assets	$	1,788

Liabilities
Current liabilities:
Operating lease liabilities	Current operating lease liabilities	$	894
Noncurrent liabilities:
Operating lease liabilities	Long-term operating lease liabilities	$	832
	Total lease liabilities	$	1,726

Lease cost for the three and nine months ended September 30, 2019

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

(in thousands)		Three Months Ended September 30, 2019		Nine Months Ended September 30, 2018
Lease cost	Classification
Operating lease cost	General and administrative expenses	$	242	$	578
	Total lease cost	$	242	$	578

Other Information

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

(in thousands)	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	640
Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets	$	2,335

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 September 30, 2019:

	Nine Months Ended September 30, 2019
Weighted average remaining lease term - operating leases		2.29 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 September 30, 2019:

Amounts due within twelve months of September 30,	Operating Leases
	(in thousands)
2019	$	929
2020		735
2021		112
Total minimum lease payments		1,776
Less: effect of discounting		(50	)
Present value of future minimum lease payments		1,726
Less: current obligations under leases		(894	)
Long-term lease obligations	$	832

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