Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.3
Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases

Note 8—Leases

The Company recognized non-cash right-of-use assets and lease liabilities of $3.2 million upon adoption of ASU 2016-02 on January 1, 2019. The Company has two operating leases for office and manufacturing space which requires it to pay base rent and certain utilities. Monthly rent expense is recognized on a straight-line basis over the term of the leases, which expire in 2027 and 2021.

At June 30, 2019 the weighted average remaining lease term was eight years. The operating leases are included in the balance sheet at the present value of the lease payments at a 7% discount rate using the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment as the leases do not provide an implicit rate.

For the three and six months ended June 30, 2019, operating lease expense was $0.1 million and $0.3 million, respectively. For the three and six months ended June 30, 2019, cash paid was $0.1 million and $0.2 million, respectively. Rent expense was $0.1 million and $0.2 million for the three and six months ended June 30, 2018, respectively. Operating lease right-of-use assets amortization was $0.1 million and $0.2 million for the three and six months ended June 30, 2019, respectively. Variable costs are de minimis.

The following table presents the lease liabilities within the condensed balance sheet, related to the Company’s operating leases as of June 30, 2019 (in thousands):

 

Years Ending December 31,

 

 

 

 

2019 (remaining six months)

 

$

250

 

2020

 

 

514

 

2021

 

 

528

 

2022

 

 

432

 

2023

 

 

445

 

2024

 

 

459

 

Thereafter

 

 

1,459

 

Total operating lease payments

 

$

4,087

 

Less: imputed interest

 

 

(1,005

)

Total operating lease liabilities

 

$

3,082

 

 

The following table presents the future minimum rental payments due as of December 31, 2018 (in thousands):

 

Years Ending December 31,

 

 

 

 

2019

 

$

500

 

2020

 

 

514

 

2021

 

 

528

 

2022

 

 

432

 

2023

 

 

445

 

Thereafter

 

 

1,918

 

Total

 

$

4,337