Operating Leases

On January 1, 2019, the Company adopted ASC 842 using the optional transition method. The Company’s lease portfolio includes: an operating lease for its manufacturing facility in Winnipeg, Manitoba, a short-term property lease for its headquarters in Cambridge, MA and a short-term property lease for office space in Philadelphia, PA. The asset component of the Company’s operating leases is recorded as operating lease right-of-use assets and reported within other assets in the Company's condensed consolidated balance sheets. The short term and long term liability components are recorded in other current liabilities and other liabilities, respectively, in the Company’s condensed consolidated balance sheets.

Operating lease cost is recognized on a straight-line basis over the lease term. The components of lease cost for the three months ended March 31, 2019 are as follows (in thousands):



	Three months ended March 31, 2019
Lease Cost:
Operating lease cost (including related operating costs)	75
Short-term lease cost	76
Total lease cost	151



Supplemental Information:	Three months ended March 31, 2019
Weighted-average remaining lease term - operating leases (in years)	1.5
Weighted-average discount rate - operating leases	12	%

Future minimum lease payments under non-cancelable operating leases under ASC 842 as of March 31, 2019 are as follows (in thousands):



	Operating lease payments
2019 (1)	116
2020	116
2021	—
Total future minimum lease payments	232
Less: amounts representing present value adjustment	21
Operating lease liabilities as of March 31, 2019	211
Less: current portion of operating lease liabilities	136
Operating lease liabilities, net of current portion	75

(1) Amounts are for the remaining nine months ending December 31, 2019

The Company leases a manufacturing facility located in Winnipeg, Manitoba Canada, which consists of an approximately 31,100 square foot manufacturing, laboratory, warehouse and office facility, under a five-year renewable lease through September 2020 with a right to renew the lease for one subsequent five-year term. The minimum monthly rent under this lease is approximately $12,900 per month. The Company expects to incur approximately $12,500 in related operating expenses per month. Operating lease cost under this lease, including the related operating costs, was $75,000 for the three months ended March 31, 2019. Under ASC 840, rent expense for this lease, including related operating costs, was $81,000 for the three months ended March 31, 2018.

The Company leases its current corporate headquarters in Cambridge, Massachusetts under a short-term lease that was renewed as of January 1, 2019. The minimum monthly rent for this office space is approximately $10,000 per month. The Company recorded $27,000 in short-term lease cost for the three months ended March 31, 2019. Under ASC 840, the Company recorded $26,000 in rent expense for the three months ended March 31, 2018 for this lease.

The Company leases office space in Philadelphia, PA, where it occupies office space under a short-term lease that extends through August 2019. Currently, the minimum monthly rent under this lease is approximately $10,000 per month. The Company recorded $49,000 in short term lease cost for the month ended March 31, 2019. Under ASC 840, the Company recorded $24,000 in rent expense for the three months ended March 31, 2018 for this lease.