Leases

9 Months Ended

Sep. 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 nine months ended September 30, 2019, the Company also increased office space under an existing lease, which requires additional monthly lease payments.

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

	Operating leases			Finance leases
2019 (excluding the nine months ended September 30, 2019)	$	551		$	149
2020		2,114			597
2021		1,730			594
2022		1,345			329
2023		132			253
Thereafter		87			43
Total lease payments		5,959			1,965
Less:
Imputed interest		(787	)		(310	)
Total	$	5,172		$	1,655

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

Finance leases

	As of September 30, 2019
Finance lease right-of-use assets included within property and equipment, net	$	2,112
Current finance lease liabilities included within other current liabilities	$	456
Non-current finance lease liabilities included within other long-term liabilities		1,199
Total	$	1,655

Operating leases

	As of September 30, 2019
Current operating lease liabilities included within other current liabilities	$	1,814
Operating lease liabilities – non current		3,358
Total	$	5,172

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

	Three months ended September 30, 2019		Nine months ended September 30, 2019
Operating lease costs included within operating costs and expenses	$	556	$	1,617
Finance lease costs:
Amortization of right of use assets	$	171	$	479
Interest on lease liabilities		42		109
Total	$	213	$	588

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

	Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash out flows from operating leases	$	1,550
Operating cash out flows from finance leases		109
Financing cash out flows from finance leases		336
Lease liabilities arising from obtaining right-of-use assets:
Finance leases	$	1,828
Lease payments made in prior period reclassified to property and equipment		535
Remeasurement of finance lease liability due to lease modification		(22	)
Operating leases		936

As of September 30, 2019, the weighted average remaining operating lease term is 3.0 years and the weighted average discount rate used to determine the operating lease liability was 9.82%. The weighted average remaining finance lease term is 3.6 years and the weighted average discount rate used to determine the finance lease liability was 9.70%.