Note 3 - Leases

The Company adopted ASC 842 as of January 1, 2019, using a modified retrospective approach and applying the standard’s transition provisions at January 1, 2019, the effective date. The Company made an accounting policy election to exclude from balance sheet reporting those leases with initial terms of 12 months or less. At March 31, 2019, the Company has an operating lease for corporate office space and two finance leases for office equipment and furniture located at the corporate office space. In addition, the Company has auxiliary corporate office space that it rents on a month-to-month basis; this rental is accounted for as an operating lease with the same term as the Company’s main office in the same building. Upon adoption of ASC 842, the Company recognized $1.2 million of right-to-use assets as operating leases and $0.3 million of right-to-use assets as finance leases. The Company also recognized $0.2 million of long-term operating lease obligations, net of the current portion of $0.1 million and $0.9 million of long-term finance lease obligations, net of the current portion of $0.3 million.

The components of lease expense are as follows: 

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

Weighted-average remaining lease terms are as follows:

As most of the Company’s leases do not provide an implicit rate, the Company use its incremental borrowing rate based on the information available at adoption date in determining the present value of lease payment. Below is information of the incremental borrowing rate used:

Maturities of lease liabilities are as follows: