Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2020
Leases [Abstract]  



In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, which is effective for fiscal years beginning after December 15, 2018. The Company adopted ASU No. 2016-02 prospectively as of January 1, 2019, the date of initial application, and therefore prior comparative periods were not adjusted. As part of the adoption, the Company elected the “package of expedients”, which permits the Company not to reassess under the new standard the Company’s prior conclusions about lease identification and initial direct costs. The Company did not elect the use-of hindsight or the practical expedient pertaining to land easements, the latter not being applicable to the Company. The Company has lease arrangements which are classified as short-term in nature. The Company has elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize right-of-use (“ROU”) assets or lease liabilities.


The Company determines whether an arrangement is a lease at inception. The Company has operating leases for office space and office equipment. The Company’s leases have remaining lease terms of one year to seven years, some of which include options to extend the lease term for up to five years. The Company considered these options to extend in determining the lease term used to establish the Company’s right-of use assets and lease liabilities once reasonably certain of exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.


ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance of lease commencement and excludes lease incentives. The lease terms used in the calculations of the operating ROU assets and operating lease liabilities include options to extend or terminate the lease when the Company is reasonably certain that it will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term.


As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.


The Company has lease agreements with lease and non-lease components, which are generally not accounted for separately.


Components of lease expense are as follows:



Three Months Ended

March 31,

    2019     2020  
Short term lease cost   $ 44     $ 129  


Supplemental cash flow information and non-cash activity related to our operating leases are as follows:



Three Months


March 31, 2020

Non-cash activity:        
Right-of-use assets obtained in exchange for lease obligations   $ 729  


Weighted-average remaining lease term and discount rate for our operating leases are as follows:


    March 31, 2020  
Weighted-average remaining lease term (in years)     2.7  
Weighted-average discount rate     3.95 %


Scheduled maturities of operating lease liabilities outstanding as of March 31, 2020 are as follows:


Year ending December 31,        
April - December 2020   $ 2,883  
2021     1,838  
2022     1,411  
2023     1,118  
2024     971  
Thereafter     1,162  
Total lease payments     9,383  
Less: Imputed interest     (2,131 )
Present value of lease liabilities   $ 7,252