Financial Instruments

12 Months Ended

Dec. 31, 2018

Fair Value Measurements

We classify the inputs used to measure fair value into the following hierarchy:



Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2	Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.

Level 3	Unobservable inputs for the asset or liability.

At December 31, 2018, we had no financial assets or liabilities measured at fair value on a recurring basis. The Healios Warrant that was issued in March 2018 was measured at fair value on a nonrecurring basis and is a Level 3 equity instrument under the hierarchy. Refer to Note F regarding its valuation.

Financing Arrangements

We lease office and laboratory space under operating leases. The lease for our corporate offices and laboratories began in 2000 and currently expires in March 2021, with options to renew annually through March 2024. Our rent is $267,000 per year and our rental rate has not changed since the lease inception in 2000. We also lease office and laboratory space for our Belgian subsidiary, which expires in July 2020 (we renewed the lease for an additional term in March 2019). This lease includes options to renew annually through July 2022 and annual rent expense is approximately $196,000, subject to adjustments based on an inflationary index. Rent expense is recognized on a straight-line basis over the minimum lease term.

Aggregate rent expense was approximately $493,000, $477,000 and $465,000 in 2018, 2017 and 2016, respectively. The future annual minimum lease commitments at December 31, 2018 are approximately $393,000 for 2019, $297,000 for 2020, and $90,000 for 2021. Refer to Note B regarding our adoption of ASU 2016-02 in January 2019 to account for our leases.

We paid no interest during the three years ended December 31, 2018.