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Leases
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases

9. Leases

The Company leases  real estate, including laboratories and office space, and certain equipment related to its  research and development.  The Company’s leases have  remaining lease terms ranging from one to six years.  Certain leases include an option to renew, exercisable at the Company’s sole discretion, with renewal terms that can extend the lease for two years. The Company evaluated the renewal options in its leases to determine if it was reasonably certain that the renewal option would be exercised, and therefore should be included in the calculation of the operating lease assets and operating lease liabilities. Given the Company’s current business structure, uncertainty of future growth, and the associated impact to real estate, the Company concluded that it is not reasonably certain that any renewal options would be exercised. Therefore, the operating lease assets and lease liabilities only contemplate the initial lease terms.

In January 2018, the Company executed a lease agreement for lab space in Cambridge, Massachusetts. The lease consists of approximately 9,500 square feet with an initial term of five years with the option to extend the term for one additional two year term. The future minimum rent commitment for the initial five-year term is approximately $3,100. In addition to rent, the lease requires the Company to pay additional amounts for taxes, insurance, maintenance and other operating expenses.

In January 2018, the Company executed a lease agreement for office space in Cambridge, Massachusetts. The space serves as the Company’s corporate headquarters and consists of approximately 16,000 square feet. The term of the lease runs through February 2022. The future minimum rent commitment for the lease term is approximately $3,600. In addition to rent, the lease requires the Company to pay additional amounts for taxes, insurance, maintenance and other operating expenses.

In November 2018, the Company entered into a 48-month capital lease for certain lab equipment to be used at its facility in Cambridge Massachusetts.  The future minimum lease commitment for the lease term is approximately $1,243

In January 2019, the Company executed a lease agreement for additional office space in Cambridge, Massachusetts. The space serves as office space supporting the Company’s lab operations and consists of approximately 5,000 square feet. The term of the lease runs through January 2025. The future minimum rent commitment for the lease term is approximately $2,600.

As of March 31, 2019, minimum future lease payments for these operating and finance leases were as follows:

 

 

 

Finance Leases

 

 

Operating Leases

 

2019

 

$

206

 

 

$

1,504

 

2020

 

 

276

 

 

 

2,409

 

2021

 

 

276

 

 

 

2,445

 

2022

 

 

485

 

 

 

1,423

 

2023

 

 

 

 

 

686

 

Thereafter

 

 

 

 

 

777

 

Total

 

 

1,243

 

 

 

9,244

 

Less: Imputed Interest

 

 

252

 

 

 

2,230

 

Total Lease Liabilities

 

$

991

 

 

$

7,014

 

 

As of December 31, 2018, minimum future lease payments for these operating and finance leases were as follows:

 

 

 

Finance Leases

 

 

Operating Leases

 

2019

 

$

276

 

 

$

1,934

 

2020

 

 

276

 

 

 

2,017

 

2021

 

 

276

 

 

 

2,056

 

2022

 

 

485

 

 

 

1,023

 

2023

 

 

 

 

 

278

 

Thereafter

 

 

 

 

 

 

Total

 

 

1,313

 

 

 

7,308

 

 

The following table summarizes the effect of lease costs in the Company’s condensed consolidated statements of operations:

 

 

 

For the Three

Months Ended

March 31,

 

 

 

2019

 

Lease Expense

 

 

 

 

Operating lease expense

 

$

522

 

Amortization of right-of-use asset under a finance lease

 

 

52

 

Interest expense on finance lease liability

 

 

28

 

Total Lease Expense

 

$

602

 

 

Short-term lease costs were not material for the three months ended March 31, 2019.

The supplemental disclosure of cash flow information related to the Company’s leases and the weighted average remaining lease term and weighted average discount rate of the Company’s leases are as follows:

 

 

 

For the Three

Months Ended

March 31,

 

 

 

2019

 

Other information

 

 

 

 

Operating cash flows used for operating leases

 

$

787

 

Operating lease liabilities arising from obtaining right-of-use-assets

 

$

1,629

 

Finance lease liabilities arising from obtaining right-of-use assets

 

$

 

Weighted-average remaining lease term (in years)

 

 

 

 

Operating lease

 

 

4.1

 

Finance lease

 

 

3.8

 

Weighted-average discount rate

 

 

 

 

Operating lease

 

 

12.3

%

Finance lease

 

 

10.7

%