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Leases
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
LEASES LEASESIn March 2016, the FASB issued ASU 2016-02. ASU 2016-02’s core principle is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information. The Company adopted ASU 2016-02 under the alternative transition method (the effective date approach). It allowed the Company to initially apply the new lease guidance at the adoption date (rather than at the beginning of the earliest period presented). Prior periods have not been adjusted.
The primary effect of adopting ASU 2016-02 to the Company was to record right-of-use assets and obligations for the leases currently classified as operating leases. The Company’s significant operating leases include the lease of approximately 25,500 square feet of office space in Nashville, Tennessee for its corporate headquarters. This lease currently expires in October 2022. The operating leases also include the lease of approximately 14,200 square feet of wet laboratory and office space in Nashville, Tennessee by Cumberland Emerging Technologies (“CET”), our majority-owned subsidiary, where it operates the CET Life Sciences Center. This lease currently expires in April 2023. The Company did not have any leases classified as finance leases at January 1, 2019 or September 30, 2019. The new lease accounting standard did not have a significant impact on the Company's Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for any period presented.
The Company elected the package of practical expedients offered in the transition guidance which allows management not to reassess lease identification, lease classification and initial direct costs at the adoption date.
These operating leases resulted in initial ROU assets of $3.6 million and lease liabilities of $3.8 million as of January 1, 2019 for non-cancelable operating leases with original lease terms in excess of one year.
Operating lease liabilities were recorded as the present value of remaining lease payments not yet paid for the lease term discounted using the incremental borrowing rate associated with each lease. Operating lease right-of-use assets represent operating lease liabilities adjusted for lease incentives and initial direct costs. As the Company’s leases do not contain implicit borrowing rates, the incremental borrowing rates were calculated based on information available at January 1, 2019. Incremental borrowing rates reflect the Company’s estimated interest rates for collateralized borrowings over similar lease terms. The weighted-average remaining lease term is 3.5 years and the weighted-average incremental borrowing rate used to discount the present value of the remaining lease payments is 7.42%.
Lease Position
At September 30, 2019, the Company recorded the following on the Condensed Consolidated Balance Sheet:

Right-of-Use AssetsBalance Sheet ClassificationSeptember 30, 2019
Operating lease right-of-use assetsOther non-current assets  $3,047,283  
Total$3,047,283  

Lease LiabilitiesBalance Sheet ClassificationSeptember 30, 2019
Current:
Operating lease liabilitiesOther current liabilities  $897,506  
Noncurrent:
Operating lease liabilitiesOther long-term liabilities  2,315,761  
Total$3,213,267  


Maturity of Leases Liabilities at September 30, 2019Operating Leases
2019$282,646  
20201,120,067  
20211,144,889  
20221,019,313  
202392,477  
After 2023—  
Total lease payments3,659,392  
Less: Interest(446,125) 
Present value of lease liabilities$3,213,267