Note 7 – Leases

The Company has operating leases for its research and development and manufacturing facilities, corporate headquarters and offices and certain equipment. At September 30, 2019, the facility leases have expirations that range from approximately 4 year to 7 years, some of which include options to extend the leases or terminate the leases early. Options to extend the leases or terminate the leases early are only included in the lease term when it is reasonably certain that the option will be exercised. The facility leases contain provisions for future rent increases, and obligate the Company to pay building operating costs. Upon closing of the Catalent transaction in July 2019, the Company assigned two of its manufacturing facility leases to Catalent (see Note 12). As a result, the Company wrote-off the corresponding right-of-use ("ROU") assets of $8.2 million and the associated lease liabilities of $12.7 million.

The operating leases represent the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the asset and are capitalized as ROU assets for the expected lease term (net of the deferred rent liability) with corresponding lease liabilities representing the obligation to make lease payments arising from the lease.

Supplemental balance sheet information related to leases as of September 30, 2019 was as follows (in thousands, except weighted-average remaining lease term and discount rate):


Lease Assets and Liabilities	Classification	Amount
Assets:
Operating lease ROU assets	Other non-current assets	$	6,712

Liabilities:
Current operating lease liabilities	Other current liabilities	$	1,191
Non-current operating lease liabilities	Other non-current liabilities		10,250
Total operating lease liabilities		$	11,441

Weighted-average remaining lease term (years)			6.21
Weighted-average discount rate			15.58	%

Lease expense for the operating and short-term leases for the three and nine months ended September 30, 2019 was as follows (in thousands):


	Three Months		Nine Months
	Ended		Ended
	September 30,		September 30,
	2019		2019
Operating lease expense	$	819	$	3,378
Short-term lease expense		86		422
Total lease expense	$	905	$	3,800

Supplemental cash flow information related to leases for the nine months ended September 30, 2019 was as follows (in thousands):


	Amount
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,342
ROU assets obtained in exchange for operating lease obligations		16,534

As of September 30, 2019, maturities of lease liabilities were as follows (in thousands):


Year	Amount
2019 (remainder)	$	711
2020		2,904
2021		2,969
2022		3,037
2023		2,897
Thereafter		5,679
Total operating lease payments		18,197
Less: imputed interest		(6,756)
Total operating lease liabilities	$	11,441

During the nine months ended September 30, 2019, the Company did not enter into any additional operating or finance leases other than in April 2019, when the Company extended the lease at its Rockville, MD facility to expire in January 2024. This lease was subsequently assigned to Catalent (see Note 12).