Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Leases

The Company has three operating leases for real estate in California and Maryland:

• Carlsbad, California – corporate offices with a term date of February 2020 and leased from a related party (see also Note 6),

• Oceanside, California – primary research facility and laboratory space with a term date of December 2021 with the Company’s option to terminate the lease on January 1, 2020 upon a six-month advanced notice,

• Frederick, Maryland – mixed laboratory and administrative space with a term date of November 2025.

These operating leases are included in "right-of-use asset" on the Company's June 30, 2019 balance sheet and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments is included in “operating lease liabilities, current” and “operating lease liabilities, net of current portion” on the Company's June 30, 2019 balance sheet. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. As of June 30, 2019, total right-of-use assets and operating lease liabilities were approximately $849,000 and $1,239,000, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. 

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company's right-of-use assets and related lease liabilities were as follows (in thousands):

	Three months ended June 30, 2019		Six months ended June 30, 2019
Operating lease costs	$	113	$	253
Cash paid for operating lease liabilities		118		236
Right-of-use assets obtained in exchange for new operating lease obligations		—		1,389
Weighted-average remaining lease term (years)				5.07
Weighted average discount rate				17.46	%

Maturities of lease liabilities as of June 30, 2019 were as follows :
2019 (remaining months)	$	249
2020		368
2021		347
2022		219
2023		226
Thereafter		473
		1,882
Less: present value adjustments		(643	)
Total lease liabilities	$	1,239
Current operating lease liabilities	$	265
Non-current operating lease liabilities		974
Total operating lease liabilities	$	1,239

Future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018, are as follows (in thousands):

	Amount
2019	$	491
2020		368
2021		347
2022		220
2023		227
Thereafter		454
Total	$	2,107

Licensed Patents

The Company has a minimum annual license fee of $75,000 payable in two installments per year to Astellas Pharma pursuant to the amended UMass IP license agreement. The license is not terminable at will by the licensor.

Customer Concentration

During the six months ended June 30, 2019 and 2018, for the biomedical market segment, two customers and one customer accounted for 52% and 37% of consolidated revenues, respectively, and another customer during six months ended June 30, 2018 accounted for 18% of revenues. No other single customer accounted for more than 10% of revenues for any period presented.

Vendor Concentration

During the six months ended June 30, 2019, no single vendor accounted for more than 10% of consolidated purchases, while during the same periods in 2018 one vendor accounted for approximately 20% of consolidated purchases.