LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

LEASES

The Company has non-cancelable operating leases for its office and laboratory facilities, automobiles used by its sales force, and 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 Other (expense) income, net in the Condensed 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		Six months ended
(in thousands)	Financial Statement Classification	June 30, 2019		June 30, 2019
Operating lease cost	Selling, general and administrative expenses	$	178	$	365
Operating lease cost	Other (expense) income, net	147		295
Total lease cost		$	325	$	660
Sublease Income	Other (expense) income, net	$	361	$	723

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

	Three months ended		Six months ended
(in thousands)	June 30, 2019		June 30, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	617	$	1,199

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

(in thousands)	Financial Statement Classification	June 30, 2019
Assets
Operating lease right-of-use assets	Other long-term assets	$	3,226
Liabilities
Current operating lease liabilities	Other current liabilities	$	2,102
Noncurrent operating lease liabilities	Other long term liabilities	5,860
Total lease liabilities		$	7,962

Maturity of lease liabilities as of June 30, 2019 were as follows:

(in thousands)	Operating Leases
2019 (remainder)	$	1,253
2020	2,438
2021	2,325
2022	2,188
2023	632
Thereafter	—
Total lease payments	$	8,836
Less: Interest	874
Present value of lease liabilities	$	7,962

Lease term and discount rate consisted of the following:

	June 30, 2019
Weighted-average remaining lease term (years):
Operating leases	3.6
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	$	2,624
2020	2,526
2021	2,322
2022	2,188
2023	632
Thereafter	—
Total	$	10,292

LEASES

LEASES

The Company has non-cancelable operating leases for its office and laboratory facilities, automobiles used by its sales force, and 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 Other (expense) income, net in the Condensed 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		Six months ended
(in thousands)	Financial Statement Classification	June 30, 2019		June 30, 2019
Operating lease cost	Selling, general and administrative expenses	$	178	$	365
Operating lease cost	Other (expense) income, net	147		295
Total lease cost		$	325	$	660
Sublease Income	Other (expense) income, net	$	361	$	723

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

	Three months ended		Six months ended
(in thousands)	June 30, 2019		June 30, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	617	$	1,199

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

(in thousands)	Financial Statement Classification	June 30, 2019
Assets
Operating lease right-of-use assets	Other long-term assets	$	3,226
Liabilities
Current operating lease liabilities	Other current liabilities	$	2,102
Noncurrent operating lease liabilities	Other long term liabilities	5,860
Total lease liabilities		$	7,962

Maturity of lease liabilities as of June 30, 2019 were as follows:

(in thousands)	Operating Leases
2019 (remainder)	$	1,253
2020	2,438
2021	2,325
2022	2,188
2023	632
Thereafter	—
Total lease payments	$	8,836
Less: Interest	874
Present value of lease liabilities	$	7,962

Lease term and discount rate consisted of the following:

	June 30, 2019
Weighted-average remaining lease term (years):
Operating leases	3.6
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	$	2,624
2020	2,526
2021	2,322
2022	2,188
2023	632
Thereafter	—
Total	$	10,292