Balance Sheet Accounts

12 Months Ended

Dec. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Accounts

Balance Sheet Accounts

Prepaid and Other Current Assets

Prepaid and other current assets consist of the following:

	December 31,
	2020		2019
Advances to commercial manufacturers	$	660	$	2,462
Prepaid FDA user fee and advances to CROs	1,262		6,345
Prepaid insurance	191		191
Prepaid income taxes	—		4,661
All other	1,605		1,445
Total Prepaid expenses and other current assets	$	3,718	$	15,104

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consist of the following:

	December 31,
	2020		2019
Royalties payable to commercial partners	$	5,996	$	6,004
Accrued research & development	2,724		1,686
Accrued professional fees	2,370		1,926
Accrued salary and other compensation	4,686		8,083
Accrued product sales reserves	4,966		8,364
All other	3,075		2,298
Total Accrued expenses and other liabilities	$	23,817	$	28,361

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet. ASU 2016-02 requires a lessee to recognize a liability to make lease payments (the lease liability) and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term on the balance sheet.

A lease is a contract, or part of a contract, that conveys the right to control the use of explicitly or implicitly identified property, plant or equipment in exchange for consideration. Control of an asset is conveyed to the Company if the Company obtains the right to obtain substantially all of the economic benefits of the asset or the right to direct the use of the asset. The Company recognizes ROU assets and lease liabilities at the lease commencement date based on the present value of future, fixed lease payments over the term of the arrangement. ROU assets are amortized on a straight-line basis over the term of the lease. Lease liabilities accrete to yield and are reduced at the time when the lease payment is payable to the vendor.

In accordance with Topic 842, leases are measured at present value using the rate implicit in the lease or, if the implicit rate is not determinable, the lessee's incremental borrowing rate. As the implicit rate is not typically available, the Company uses its incremental borrowing rate based on the information available at the lease commencement date to determine the present value of future lease payments. The implicit borrowing rate approximates the rate the Company would pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in similar economic environment.

The Company leases office space in Woodcliff Lake, New Jersey for its principal office under an amended lease agreement through June 2025. The Company also leases a lab space in Cambridge, Massachusetts under a lease agreement through April

2024. Both the Company leases are classified as operating leases and have remaining lease terms ranging from 3.33 years to 4.5 years. The principal office and the lab space leases include renewal option to extend the lease for up to 5 years. Furthermore, the Company has not elected the practical expedient to separate lease and non-lease components for all classes of underlying assets.

The table below summarizes the Company's total lease costs included in the consolidated financial statements, as well as other required quantitative disclosures (in thousands):

	December 31,
	2020			2019
Operating lease cost	$	1,323		$	1,146
Total lease cost	$	1,323		$	1,146
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	1,323		$	952
Right-of-use assets obtained in exchange for new operating lease liabilities	$	855		$	3,716
Weighted-average remaining lease term - operating leases	4.1 years			5.0 years
Weighted-average discount rate - operating leases	6.0		%	6.0		%

The table below presents the maturity of lease liabilities on an annual basis for the remaining years for the Company's two lease agreements (in thousands):

Year Ending December 31,	Operating Leases
2021	$	1,391
2022	1,423
2023	1,455
2024	1,038
2025	413
Thereafter	—
Total	5,720
Less: present value discount	(638)
Present value of lease liabilities	$	5,082
Balance Sheet Classification at December 31:
Current lease liabilities	$	1,123
Long-term lease liabilities	3,959
Total lease liabilities	$	5,082