Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

v3.19.2
Leases (Tables)
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Schedule of Adjustments Made to Accounts on Condensed Consolidated Balance Sheet

As a result of applying the modified retrospective method to adopt the lease guidance, the following adjustments were made to accounts on the condensed consolidated balance sheet as of January 1, 2019 (in thousands):

 

Balance Sheet

 

December 31, 2018

 

 

Effect of

adoption

of ASC

842

 

 

January 1, 2019

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, non-current

 

$

 

 

$

4,180

 

 

$

4,180

 

Total assets

 

$

 

 

$

4,180

 

 

$

4,180

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease liability, current

 

$

 

 

$

976

 

 

$

976

 

Deferred Rent1

 

 

525

 

 

 

(525

)

 

 

 

Operating lease liability, long term portion

 

 

 

 

 

3,729

 

 

 

3,729

 

Total liabilities

 

$

525

 

 

$

4,180

 

 

$

4,705

 

 

 

1.

Included in Other liabilities on the balance sheet.

Components of Lease Expense

The components of lease expense were as follows (in thousands):

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

2019

 

 

2019

 

Operating leases

 

 

 

 

 

 

 

Operating lease expense

$

595

 

 

$

998

 

Variable lease expense

 

127

 

 

$

232

 

Total operating lease cost, net

$

722

 

 

$

1,230

 

 

 

 

 

 

 

 

 

Sublease rental income

$

(44

)

 

$

(83

)

 

 

 

 

 

 

 

 

Finance leases

 

 

 

 

 

 

 

Amortization of right-of-use asset

$

2

 

 

$

4

 

Interest on lease liabilities

 

1

 

 

 

2

 

Total finance lease cost

$

3

 

 

$

6

 

Schedule of Balance Sheets Classification of Leases

The following table summarizes the balance sheets classification of leases (in thousands):

 

 

June 30,

 

 

2019

 

Operating leases

 

 

 

Operating lease right-of-use assets

$

10,796

 

Operating lease liabilities, Current1

$

971

 

Operating lease liabilities, Long-term

 

10,707

 

Total operating lease liabilities

$

11,678

 

Finance leases

 

 

 

Property and equipment, at cost

$

107

 

Accumulated depreciation

 

37

 

Property and equipment, net

$

70

 

Other current liabilities

$

30

 

Other liabilities

 

6

 

Total finance lease liabilities

$

36

 

 

 

1.

Included in other liabilities.

Schedule of Leases Information

The following table represents information about leases at June 30, 2019:

 

Weighted average remaining lease term

 

 

 

Operating leases

7.2 years

 

Finance leases

1.2 years

 

Weighted average discount rate

 

 

 

Operating leases

 

6.74

%

Finance leases

 

7.06

%

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities at June 30, 2019 were as follows (in thousands):

 

 

 

Operating Leases

 

 

Finance Leases

 

Lease payments

 

 

 

 

 

 

 

 

2019 1

 

$

 

 

$

16

 

2020

 

 

2,517

 

 

 

21

 

2021

 

 

2,589

 

 

 

 

2022

 

 

2,650

 

 

 

 

2023

 

 

1,961

 

 

 

 

Thereafter

 

 

7,236

 

 

 

 

Total lease payments

 

 

16,953

 

 

 

37

 

Less imputed interest

 

 

(4,015

)

 

 

(1

)

Total lease payments, net of interest

 

$

12,938

 

 

$

36

 

 

 

1.

Maturities for operating lease liabilities in 2019 is less than tenant improvement allowances expected to be received.

Supplemental Cash Flow Information

Supplemental cash flow information is as follows (in thousands):

 

 

Six Months Ended

June 30,

 

 

2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

Operating cash flows from operating leases

$

646

 

Operating cash flows from finance leases

$

2

 

Financing cash flows from finance leases

$

16

 

Right-of-use asset obtained in exchange for lease obligations:

 

 

 

Operating leases

$

62

 

Finance leases

$