Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies (Tables)

v3.19.3
Commitments and Contingencies (Tables)
9 Months Ended
Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Schedule of Reconciliation of Maturity Analysis of Annual Undiscounted Cash Flows

The Company determined that, for purposes of applying ASC 842, the commencement date of the 2019 Lease occurred on May 1, 2019. The Company recorded a right-of-use asset and lease liability of $15.8 million using an incremental borrowing rate of 9.3%, net of tenant allowances of $9.3 million, on the May 1, 2019 lease commencement date. The Company is amortizing the tenant allowance over the term of the 2019 Lease starting at the lease commencement date on a straight-line basis. On the Company’s condensed consolidated balance sheets, the Company classified $0.7 million of the lease liability as short-term and $18.3 million of the lease liability as long-term as of September 30, 2019.

The Company elected the practical expedient provided under ASC 842 and therefore has combined all lease and non-lease components when determining the right-of-use asset and lease liability for the 2019 Lease.

Financing Lease

In March 2019, the Company entered into an equipment lease agreement (the “Equipment Lease”) that has a 48-month term. At the end of the term, the Company has the right to return the leased equipment, extend the lease, or buy the equipment at the then-current fair market value of the equipment. The Company accounted for the Equipment Lease as a financing lease under ASC 842 and recorded a financing lease right-of-use asset and a corresponding financing lease liability of approximately $1.0 million at the time of executing the Equipment Lease.

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating and financing lease liabilities as of September 30, 2019 (in thousands):

 

 

 

Operating

 

 

Financing/Capital

 

Three months ending December 31, 2019

 

$

358

 

 

$

76

 

Year ended December 31, 2020

 

 

4,252

 

 

 

304

 

Year ended December 31, 2021

 

 

3,824

 

 

 

300

 

Year ended December 31, 2022

 

 

3,935

 

 

 

299

 

Year ended December 31, 2023

 

 

4,049

 

 

 

51

 

Year ended December 31, 2024 and beyond

 

 

27,709

 

 

 

 

Total minimum lease payments

 

$

44,127

 

 

$

1,030

 

Less imputed interest

 

 

16,648

 

 

 

151

 

Less leasehold incentive

 

 

7,076

 

 

 

 

Total lease liability

 

$

20,403

 

 

$

879

 

 

 

Schedule of Total Lease Cost for Operating and Financing Leases as well as Weighted Average Information for Leases

The following table outlines the total lease cost for the Company’s operating and financing leases as well as weighted average information for these leases as of September 30, 2019 (in thousands):

 

 

 

Three Months Ended

September 30, 2019

 

 

Nine Months Ended September 30, 2019

 

Lease cost:

 

 

 

 

 

 

 

 

Operating lease cost

 

$

959

 

 

$

1,893

 

Financing lease cost:

 

 

 

 

 

 

 

 

Amortization of right-of-use asset

 

$

61

 

 

$

138

 

Interest on lease liabilities

 

 

21

 

 

 

52

 

Total financing lease cost

 

$

82

 

 

$

190

 

Cash paid for amounts included in the measurement of liabilities

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

330

 

 

$

989

 

Operating cash flows from financing lease

 

$

76

 

 

$

200

 

 

 

 

 

 

 

 

 

 

Other information:

 

 

 

 

 

Nine Months Ended September 30, 2019

 

Weighted-average remaining lease term (in years) - operating lease

 

 

 

 

 

 

9.71

 

Weighted-average discount rate - operating lease

 

 

 

 

 

 

9.35

%

Weighted-average remaining lease term (in years) - financing lease

 

 

 

 

 

 

3.49

 

Weighted-average discount rate - financing lease

 

 

 

 

 

 

9.32

%