Leases

6 Months Ended

Jun. 30, 2019

7. Leases

As of June 30, 2019, the Company leases office space in Davis, CA and Phoenix, AZ, as well as additional buildings, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis. The Company subleases a portion of the Davis office lease and greenhouse to third parties. The Company does not currently have any finance leases or other material leases that have not yet commenced.

Some leases (the warehouse, greenhouse and a copy machine) include one or more options to renew, with renewal terms that can extend the lease term from one to six years. The exercise of lease renewal options is at the Company’s sole discretion.

The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or material restrictive covenants. Leases consisted of the following (in thousands):

Leases	Classification	June 30, 2019		March 31, 2019
Assets
Operating lease assets	Right of use asset	$	2,051	$	2,193
Total leased assets		$	2,051	$	2,193
Liabilities
Current - Operating	Operating lease liability-current	$	594	$	574
Noncurrent - Operating	Operating lease liability-noncurrent		1,609		1,771
Total leased liabilities		$	2,203	$	2,345

Lease Cost	Classification	For the Six Months Ended June 30, 2019			For the Three Months Ended June 30, 2019
Operating lease cost	SG&A and R&D Expenses	$	352		$	177
Short term lease cost(1)	R&D Expenses		93			45
Sublease income(2)	SG&A and R&D Expenses		(27	)		(12	)
Net lease cost		$	418		$	210

(1)

Short term lease cost consists of field trial lease agreements with a lease term of 12 months or less.

(2)

Sublease income is recorded as a credit to lease expense.

Lease Term and Discount Rate

June 30, 2019

March 31, 2019

Weighted-average remaining lease

term (years)

2.4

2.6

Weighted-average discount rate