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 and six months ended June 30, 2019 are as follows (in thousands):



	Three months ended June 30, 2019	Six months ended June 30, 2019
Lease Cost:
Operating lease cost (including related operating costs)	71	146
Short-term lease cost	53	129
Total lease cost	124	275



Supplemental Information:	Six months ended June 30, 2019
Weighted-average remaining lease term - operating leases (in years)	1.25
Weighted-average discount rate - operating leases	12	%

Future minimum lease payments under non-cancelable operating leases under ASC 842 as of June 30, 2019 are as follows (in thousands):



	Operating lease payments
2019 (1)	76
2020	113
Total future minimum lease payments	189
Less: amounts representing present value adjustment	9
Operating lease liabilities as of June 30, 2019	180
Less: current portion of operating lease liabilities	142
Operating lease liabilities, net of current portion	38

(1) Amounts are for the remaining six 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 $12,600 per month. The Company expects to incur approximately $12,300 in related operating expenses per month. Operating lease cost under this lease, including the related operating costs, was $71,000 and $146,000 for the three and six months ended June 30, 2019, respectively. Under ASC 840, rent expense for this lease, including related operating costs, was $80,000 and $161,000 for the three and six months ended June 30, 2018, respectively.

The Company leases its current corporate headquarters in Cambridge, Massachusetts under a short-term lease that extends through December 31, 2019. The minimum monthly rent for this office space is approximately $8,000 per month. The Company recorded $24,000 and $51,000 in short-term lease cost for the three and six months ended June 30, 2019, respectively. Under ASC 840, the Company recorded $36,000 and $62,000 in rent expense for the three and six months ended June 30, 2018, respectively, for this lease.

The Company leases office space in Philadelphia, PA, where it occupies office space under a short-term lease that extends through December 31, 2019. Currently, the minimum monthly rent under this lease is approximately $11,000 per month. The Company recorded $29,000 and $78,000 in short term lease cost for the three and six months ended June 30, 2019, respectively. Under ASC 840, the Company recorded $32,000 and $56,000 in rent expense for the three and six months ended June 30, 2018, respectively, for this lease.