LEASES

3 Months Ended

Mar. 31, 2019

The Company has non-cancelable operating leases for its office and laboratory facilities, automobiles used by its sales force, and as well as certain operating leases for office equipment.

The Company relocated its corporate headquarters from Newark, California to Lake Forest, Illinois in 2018 and subsequently entered into two subleases which, together, account for the entirety of the Newark facility. Each sublease contains abated rent periods resulting in reduced operating lease cash flows through May 2019. Operating lease costs and sublease income related to the Newark facility are accounted for in interest and other (expense) income, net in the Consolidated Statement of Operations. The Company has the right to renew the term of the Lake Forest lease for one period of five years, provided that written notice is made to the Landlord no later than twelve months prior to the expiration of the initial term of the Lease.

Lease expense during the period included the following:



		Three months ended
(in thousands)	Financial Statement Classification	March 31, 2019
Operating lease cost	Selling, general and administrative expenses	$	187
Operating lease cost	Interest income and other (expense) income, net	148
Total lease cost		$	335
Sublease Income	Interest and other (expense) income, net	$	362

Supplemental cash flow and other information related to leases were as follows:



	Three months ended
(in thousands)	March 31, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	582

Supplemental balance sheet information related to leases consisted of the following:



(in thousands)	Financial Statement Classification	March 31, 2019
Assets
Operating lease right-of-use assets	Property and equipment, net	$	3,446
Liabilities
Current operating lease liabilities	Other current liabilities	$	2,118
Noncurrent operating lease liabilities	Other long term liabilities	6,357
Total lease liabilities		$	8,475

Maturity of lease liabilities as of March 31, 2019 were as follows:



(in thousands)	Operating Leases
2019 (remainder)	$	1,878
2020	2,443
2021	2,326
2022	2,188
2023	632
Thereafter	—
Total lease payments	$	9,467
Less: Interest	992
Present value of lease liabilities	$	8,475

Lease term and discount rate consisted of the following:



	March 31, 2019
Weighted-average remaining lease term (years):
Operating leases	3.9
Weighted-average discount rate:
Operating leases	6.0	%

Future minimum lease payments under the Company's non-cancelable operating leases as of December 31, 2018 were as follows:



(in thousands)	Lease Payments
2019 (remainder)	$	2,624
2020	2,526
2021	2,322
2022	2,188
2023	632
Thereafter	—
Total	$	10,292

LEASES