Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.2
Leases
6 Months Ended
Jun. 30, 2019
Lessee Disclosure [Abstract]  
Leases

Note 11. Leases

Operating Lease

The Company leases its principal executive offices in Newark, California, under a non-cancelable operating lease which expires in October 2021. This lease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions or renewal options. Our lease includes both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. Upon adoption of ASC 842 on January 1, 2019, the Company recognized an operating lease right-of-use asset of $0.9 million and a corresponding lease lability of $0.9 million, using a discount rate of 6% which reflects the Company’s incremental borrowing rate for a similar asset and similar term as of the date of adoption. The operating lease cost recognized for the three and six months ended June 30, 2019 was $0.1 million and $0.2 million, respectively. Rent expense recognized for the three and six months ended June 30, 2018 was $0.1 million and $0.2 million, respectively.

Supplemental information related to the operating lease as follows (in thousands):

 

 

 

As of June 30,

2019

 

Assets

 

 

 

 

Operating lease right-of-use asset

 

$

697

 

Liabilities

 

 

 

 

Lease liability (short-term)

   (presented within Accrued expenses and other current

   liabilities)

 

$

289

 

Lease liability (long-term)

   (presented within Other liabilities)

 

 

464

 

Total operating lease liability

 

$

753

 

 

 

 

 

Six months ended June 30, 2019

 

Cash paid for amounts included in the measurement of lease

   liabilities

   (presented within Operating cash flows)

 

$

173

 

 

Maturities of the lease liability at June 30, 2019 are as follows (in thousands):

 

2019 (remainder of year)

 

$

146

 

2020

 

 

357

 

2021

 

 

304

 

Total lease payments, undiscounted

 

 

807

 

Less: imputed interest

 

 

(54

)

Total

 

$

753

 

 

The Company does not have any finance leases.

The following table is shown for comparative purposes only. The future minimum lease payments under the non-cancelable lease at December 31, 2018 were as follows (in thousands):

 

2019

 

$

352

 

2020

 

 

357

 

2021

 

 

304

 

Total

 

$

1,013