Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.2
Leases
6 Months Ended
Jun. 30, 2020
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 that 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. This lease includes both lease components (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 the Company has elected the practical expedient to group lease and non-lease components for all leases. Upon adoption of Topic 842 on January 1, 2019, the Company recognized an operating lease right-of-use asset of $0.9 million and a corresponding lease liability 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.  

 

During the three months ended June 30, 2020, the Company executed a lease agreement for office space in Washington, DC, under a non-cancelable operating lease that expires in November 2025. 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. The lease contains an option to extend the term for an additional five years subject to certain terms and conditions. This lease includes both lease components (e.g., fixed payments including rent, taxes, parking, 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 the Company has elected the practical expedient to group lease and non-lease components for all leases. Upon lease commencement on May 1, 2020, the Company recognized an operating lease right-of-use asset of $0.5 million and a corresponding lease liability of $0.5 million, using a discount rate of 3.85%, which reflects the Company’s incremental borrowing rate for a similar asset and similar term as of the date of commencement.

The operating lease cost recognized for the three months ended June 30, 2020 and 2019 was $0.1 million for each period. The operating lease cost recognized for the six months ended June 30, 2020 and 2019 was $0.2 million for each period.

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

 

 

 

As of June 30,

2020

 

 

As of December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

$

854

 

 

$

556

 

Liabilities

 

 

 

 

 

 

 

 

Lease liabilities (short-term)

   (presented within Accrued expenses and other current

   liabilities)

 

$

378

 

 

$

302

 

Lease liabilities (long-term)

   (presented within Other liabilities)

 

 

538

 

 

 

296

 

Total operating lease liabilities

 

$

916

 

 

$

598

 

 

 

 

Six months ended

June 30, 2020

 

 

Six months ended

June 30, 2019

 

Cash paid for amounts included in the measurement of

   lease liabilities (presented within Cash flows from

   operating activities)

 

$

156

 

 

$

173

 

 

Maturities of the lease liabilities at June 30, 2020 are as follows (in thousands):

 

2020 (remainder of year)

 

$

187

 

2021

 

 

402

 

2022

 

 

100

 

2023

 

 

102

 

2024

 

 

105

 

2025

 

 

90

 

Total lease payments, undiscounted

 

 

986

 

Less: imputed interest

 

 

(70

)

Total

 

$

916

 

 

The Company does not have any finance leases.