Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

7. LEASES

The Company leases facilities and certain equipment under noncancelable leases that expire at various dates through November 2024. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases may include options to extend or terminate the lease at the election of the Company. These optional periods have not been considered in the determination of the right-of-use-assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options.

In April 2019, the Company entered into an operating lease to obtain 6,307 square feet of manufacturing, laboratory, and office space. The lease expires April 2024 and requires monthly lease payments subject to annual increases. During the six months ended June 30, 2019, the Company also increased office space under an existing lease, which requires additional monthly lease payments.

As of June 30, 2019, the maturities of our operating and finance lease liabilities were as follows (in thousands):

	Operating leases			Finance leases
2019 (excluding the six months ended June 30, 2019)	$	1,166		$	301
2020		2,114			596
2021		1,731			593
2022		1,345			328
2023		133			253
Thereafter		79			42
Total lease payments		6,568			2,113
Less:
Imputed interest		(917	)		(351	)
Total	$	5,651		$	1,762

Supplemental balance sheet information related to leases was as follows (in thousands):

Finance leases
	As of June 30, 2019
Finance lease right-of-use assets included within property and equipment, net	$	2,280
Current finance lease liabilities included within other current liabilities	$	447
Non-current finance lease liabilities included within other long-term liabilities		1,315
Total	$	1,762

Operating leases
	As of June 30, 2019
Current operating lease liabilities included within other current liabilities	$	1,818
Operating lease liabilities – non current		3,833
Total	$	5,651

The components of lease expense were as follows (in thousands):

	Three months ended June 30, 2019		Six months ended June 30, 2019
Operating lease costs included within operating costs and expenses	$	546	$	1,061
Finance lease costs:
Amortization of right of use assets	$	170	$	309
Interest on lease liabilities		44		67
Total	$	214	$	376

Supplemental cash flow information related to leases was as follows (in thousands):

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	941
Operating cash flows from finance leases		67
Financing cash flows from finance leases		225
Lease liabilities arising from obtaining right-of-use assets:
Finance leases	$	1,824
Lease payments made in prior period reclassified to property and equipment		535
Remeasurement of finance lease liability due to lease modification		(22	)
Operating leases		939

As of June 30, 2019, the weighted average remaining operating lease term is 3.2 years and the weighted average discount rate used to determine the operating lease liability was 9.81%. The weighted average remaining finance lease term is 3.8 years and the weighted average discount rate used to determine the finance lease liability was 9.69%.