Leases

3 Months Ended

Mar. 31, 2019

Note 7 – Leases

The Company has operating leases for its research and development and manufacturing facilities, corporate headquarters and offices and certain equipment. The operating leases have expirations that range from 1 year to 8 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.

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 right of use (“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 March 31, 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	$	11,049

Liabilities:
Current operating lease liabilities	Other current liabilities	$	3,491
Non-current operating lease liabilities	Other non-current liabilities		17,396
Total operating lease liabilities		$	20,887

Weighted-average remaining lease term (years)			5.58
Weighted-average discount rate			15.25	%

Lease expense for the operating and short-term leases for the three months ended March 31, 2019 was as follows (in thousands):

	Amount
Operating lease expense	$	1,265
Short-term lease expense		170
Total lease expense	$	1,435

Supplemental cash flow information related to leases for the three months ended March 31, 2019 was as follows (in thousands):

	Amount
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,646
ROU assets obtained in exchange for operating lease obligations		11,893

As of March 31, 2019, maturities of lease liabilities were as follows (in thousands):

Year	Amount
2019 (remainder)	$	5,008
2020		5,311
2021		5,292
2022		5,409
2023		4,919
Thereafter		5,754
Total operating lease payments		31,693
Less: imputed interest		(10,806	)
Total operating lease liabilities	$	20,887

During the three months ended March 31, 2019, the Company did not enter into any additional operating or finance leases. In April 2019, the Company extended the lease at its Rockville, MD facility to expire in January 2024. Under the amended lease, the Company will pay approximately $1.7 million per year in base rent, which was not included in the Company’s operating lease liabilities as of March 31, 2019 as the Company was not reasonably certain that the option would be exercised.