Capital Lease Obligations

9 Months Ended

Sep. 30, 2015

As of September 30, 2015 and December 31, 2014, the Company has approximately $13.7 million and $8.0 million of manufacturing equipment acquired under capital leases, respectively. The obligations under the capital leases are being repaid in equal monthly installments over 24 to 36 month terms and include principal and interest payments with an effective interest rate of 13% to 17%.

The assets have been recorded at $13.7 million and are included in property and equipment on the Company's balance sheet as of September 30, 2015. The assets acquired under capital leases are being amortized on a straight-line basis over 5 years in accordance with the Company's policy for depreciation of manufacturing equipment. Amortization expense on assets acquired under capital leases is included with depreciation expense. Amortization expense related to these capital leased assets was $0.6 million and $0.3 million in the three months ended September 30, 2015 and 2014, respectively, and $1.7 million and $1.0 million in the nine months ended September 30, 2015 and 2014, respectively.

Assets held under capital leases consist of the following (in thousands):



	As of
	September 30, 2015			December 31, 2014
Manufacturing equipment	$	13,705		$	7,984
Less: Accumulated amortization	(3,623		)	(1,885		)
Total	$	10,082		$	6,099

The aggregate future minimum lease payments related to these capital leases as of September 30, 2015, are as follows (in thousands):



Years Ending December 31,	Minimum Lease Payments
2015 (remaining)	$	1,762
2016	5,639
2017	269
Total future minimum lease payments	$	7,670
Interest expense	(589		)
Total capital lease obligations	$	7,081

The Company recorded $0.3 million and $0.4 million of interest expense on the capital leases in the three months ended September 30, 2015 and 2014, respectively. The Company recorded $1.0 million in both the nine month periods ended September 30, 2015 and 2014.