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| Leases | 8) Leases
The pre-transition rent deposit of $114 thousand was transferred to the Right-of-use asset upon adoption of ASC 842 on December 1, 2019 and is included in the opening balance of $681 thousand.
The Company’s lease arrangements primarily consist of an operating lease for our office space ending in June 2024. There are no extension options.
Total lease expense recorded within general and administrative expenses was comprised of the following components:
Variable lease costs consist primarily of the Company’s portion of operating costs associated with the office space lease as the Company elected to apply the practical expedient not to separate lease and non-lease components.
As of May 31, 2020, the weighted-average remaining lease term was 4.1 years and the weighted-average discount rate is 8%. Significant judgment was used in the determination of the incremental borrowing rate which included estimating the Company’s credit rating.
Supplemental cash and non-cash information relating to our leases during the six months ended May 31, 2020 are as follows:
Future minimum payments relating to the lease recognized in our balance sheet as of May 31, 2020 are as follows:
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