The Company’s operating leases are primarily for office space, service facility centers and equipment under operating lease arrangements that expire at various dates over the next years. The Company’s leases do contain any restrictive covenants. The Company’s office leases generally contain renewal options for periods ranging from to years. Because the Company is reasonably certain to exercise these renewal options, the options are considered in determining the lease term, and payments associated with the option years are excluded from lease payments. The Company’s office leases do contain any material residual value guarantees. The Company’s equipment leases generally do contain renewal options.

 

Payments due under the Company’s operating leases include fixed payments as well as variable payments. For the Company’s office leases, variable payments include amounts for the Company’s proportionate share of operating expenses, utilities, property taxes, insurance, common area maintenance and other facility-related expenses. For the Company’s equipment leases, variable payments consist of sales taxes, property taxes and other fees.

 

The components of lease costs consisted of the following (in thousands):

 

		Three Months Ended
		March 31
		2020				2019
Operating lease cost		$	424			$	387
Variable lease cost			112				75
Total lease cost		$	536			$	462

 

 

Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):

 

		Three Months Ended
		March 31
		2020				2019
Cash paid for amounts included in the measurement of lease liabilities and ROU assets:
Operating cash flow from operating leases		$	451			$	360
ROU assets obtained in exchange for lease obligations:
Operating leases			118				112

 

Weighted average remaining lease terms and discount rates for the Company’s leases are as follows:

 

		As of March 31
		2020				2019
		Years				Years
Weighted average remaining lease term:
Operating leases			7.3				4.0

 

		Rate				Rate
Weighted average discount rate:
Operating leases			7.7	%			6.6	%

 

Future maturities of lease liabilities as of are as follows (in thousands):

 

		Operating Leases
2020		$	1,094
2021			1,055
2022			991
2023			924
2024			947
Thereafter			3,166
Total undiscounted lease payments			8,177
Less: Imputed interest			(2,460	)
Total lease liabilities		$	5,717