Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2020
Leases [Abstract]  

13. Leases


The Company leases office, warehouse and manufacturing space under a single operating lease. 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 29,732 square feet. The new rent was effective January 1, 2020. The amended lease has two five-year extension options. As of March 31, 2020, the operating lease right-of-use asset totaled approximately $2.2 million and the operating lease liability totaled approximately $2.2 million. Non-cash operating lease expense during the three months ended March 31, 2020, totaled approximately $0.1 million. As of March 31, 2020, the weighted-average discount rate for the Company’s operating lease was 6.5%.


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 March 31, 2020, are summarized as follows:


Years Ending December 31,   March 31,
2020   $ 373  
2021     513  
2022     528  
2023     544  
2024     560  
Thereafter     -  
Total future minimum lease payments     2,518  
Less amounts representing interests     (364 )
Present value of lease liability     2,154  
Current-portion of operating lease liability     372  
Long-term portion operating lease liability   $ 1,782