Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Schedule of Reconciliation of Maturity Analysis of Annual Undiscounted Cash Flows

The Company determined that the 2019 Lease’s commencement date, for purposes of applying ASC 842, occurred on May 1, 2019. The Company recorded a right-of-use asset and lease liability of $15.8 million using an incremental borrowing rate of 9.3%, net of tenant allowances of $9.3 million, on that date. The Company is amortizing the tenant allowance over the term of the 2019 Lease starting at the lease commencement date on a straight-line basis. On its condensed consolidated balance sheets, the Company classifies $0.4 million of the lease liability as short-term and $15.8 million of the lease liability as long-term as of June 30, 2019.

The Company elected the practical expedient provided under ASC 842 and therefore has combined all lease and non-lease components when determining the right-of-use asset and lease liability for the 2019 Lease.

Financing Lease

In March 2019, the Company entered into an equipment lease agreement (the “Equipment Lease”) that has a 48 month-term. At the end of the term, the Company has the right to return the leased equipment, extend the lease, or buy the equipment at the then-current fair market value of the equipment. The Company accounts for the Equipment Lease as a financing lease under ASC 842 and recorded a financing lease right-of-use asset and a corresponding financing lease liability of approximately $1.0 million at the time of executing the Equipment Lease.

The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating and financing lease liabilities as of June 30, 2019 (in thousands):

	Operating		Financing/Capital
Six months ending December 31, 2019	$	687	$	152
Year ended December 31, 2020		4,252		304
Year ended December 31, 2021		3,824		300
Year ended December 31, 2022		3,935		299
Year ended December 31, 2023		4,049		51
Year ended December 31, 2024 and beyond		27,709		—
Total minimum lease payments	$	44,456	$	1,106
Less imputed interest		17,285		172
Less leasehold incentive		9,295		—
Total minimum lease payments	$	17,876	$	934

Schedule of Total Lease Cost for Operating and Financing Leases as well as Weighted Average Information for Leases

The following table outlines the total lease cost for the Company’s operating and financing leases as well as weighted average information for these leases as of June 30, 2019 (in thousands):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Lease cost:
Operating lease cost	$	437	$	490
Financing lease cost:
Amortization of right-of-use asset	$	61	$	77
Interest on lease liabilities		23		31
Total financing lease cost	$	84	$	108
Cash paid for amounts included in the measurement of liabilities - operating lease	$	330	$	659
Operating cash flows from financing lease	$	76	$	124
Other information:			Six Months Ended June 30, 2019
Weighted-average remaining lease term (in years) - operating lease				9.80
Weighted-average discount rate - operating lease				9.37	%
Weighted-average remaining lease term (in years) - financing lease				3.74
Weighted-average discount rate - financing lease				9.32	%