Quarterly report pursuant to Section 13 or 15(d) 06-30-2019

Leases

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Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases

13. Leases

 

The Company leases office, warehouse and manufacturing space under a single operating lease, which lease originally expired during 2019 (see Note 1 under Accounting Pronouncements Adopted During the Quarter Ended June 30, 2019). On June 7, 2019, the lease was amended to extend the rental period through 2024 and reduce the amount of space leased from 54,428 square feet to 29,534 square feet. The new rent is effective the earlier of January 1, 2020 or when the Company vacates the portion of the property that will not be part of the new lease. The amended lease has two five-year extension options. As of June 30, 2019, the operating lease right-of-use asset totaled approximately $2.5 million and the operating lease liability totaled approximately $2.6 million. Non-cash operating lease expense during the six months ended June 30, 2019, totaled approximately $0.171 million. As of June 30, 2019, the weighted-average discount rate for the Company’s operating lease totaled 6.5%. During the three months ended June 30, 2019, the Company recorded a loss of approximately $0.12 million in association with the lease amendment.

 

Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the term of the lease. The Company accounts for lease components separately from the non-lease components. The depreciable life of the assets and leasehold improvements are limited by the expected lease term.

 

Operating lease future minimum payments together with the present values as of June 30, 2019, are summarized as follows:

 

    June 30, 2019  
2019   $ 490  
2020     494  
2021     509  
2022     525  
2023     540  
Thereafter     556  
Total future minimum lease payments     3,114  
Less amounts representing interests     (477 )
Present value of lease liability     2,637  
         
Current-portion of operating lease liability     587  
Long-term portion operating lease liability   $ 2,050