Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

LeasesThe Company leases separate office and laboratory space in Vancouver, British Columbia, with terms of both leases expiring in August 2021. On January 25, 2019, the Company entered into a lease for a new building in Vancouver to serve as the Company’s future head office, including both office and laboratory space. The commencement date of this lease depends upon completion of construction of the building and is currently estimated to be no later than September 1, 2021. This lease has an initial term of ten years, with two five-year extension options. In addition, the Company leases office space in Seattle, Washington with lease terms expiring in February 2022 and September 2025. None of the optional extension periods have been included in the determination

of the right-of-use asset or the lease liability for operating leases as the Company did not consider it reasonably certain that the Company would exercise any such options.

The balance sheet classification of the Company’s lease liabilities was as follows:

	March 31, 2020		December 31, 2019
Operating lease liabilities:
Current portion	$	1,749	$	1,282
Long-term portion	7,258		5,599
Total operating lease liabilities	9,007		$	6,881
Finance lease liabilities:
Current portion included in other current liabilities	23		10
Long-term portion included in other long-term liabilities	77		46
Total finance lease liabilities	100		56
Total lease liabilities	$	9,107	$	6,937

Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2020 was $0.6 million and was included in net cash used in operating activities in the consolidated statements of cash flows.

As of March 31, 2020, the maturities of the Company’s operating lease liabilities were as follows:

	Operating leases
Within 1 year	$	2,003
1 to 2 years	2,212
2 to 3 years	1,472
3 to 4 years	1,514
4 to 5 years	1,556
Thereafter	794
Total operating lease payments	9,551
Less:
Imputed interest	(544)
Operating lease liabilities	$	9,007

As of March 31, 2020, the weighted average remaining lease term is 4.6 years and the discount rate used to determine the operating lease liability was 4.6% for leases in Canadian dollars and 2.7% for leases in U.S. dollars.

During the three months ended March 31, 2020, the Company incurred total operating lease expenses of $912, which included lease expenses associated with fixed lease payments of $824, and variable payments associated with common area maintenance and similar expenses of $88.

In addition to the operating lease liabilities included in the table above, the Company has commitments for future operating lease payments of $20.3 million under the terms of the lease for the Company’s future head office, which is expected to commence in September 2021.

The Company also leases office equipment under finance lease agreements. As of March 31, 2020, the maturities of the Company’s finance lease liabilities were as follows:

	Finance leases
Within 1 year	$	25
1 to 2 years	20
2 to 3 years	14
3 to 4 years	10
4 to 5 years	36
Total finance lease payments	105
Less:
Imputed interest	(5)
Finance lease liabilities	100

Leases

LeasesThe Company leases separate office and laboratory space in Vancouver, British Columbia, with terms of both leases expiring in August 2021. On January 25, 2019, the Company entered into a lease for a new building in Vancouver to serve as the Company’s future head office, including both office and laboratory space. The commencement date of this lease depends upon completion of construction of the building and is currently estimated to be no later than September 1, 2021. This lease has an initial term of ten years, with two five-year extension options. In addition, the Company leases office space in Seattle, Washington with lease terms expiring in February 2022 and September 2025. None of the optional extension periods have been included in the determination

of the right-of-use asset or the lease liability for operating leases as the Company did not consider it reasonably certain that the Company would exercise any such options.

The balance sheet classification of the Company’s lease liabilities was as follows:

	March 31, 2020		December 31, 2019
Operating lease liabilities:
Current portion	$	1,749	$	1,282
Long-term portion	7,258		5,599
Total operating lease liabilities	9,007		$	6,881
Finance lease liabilities:
Current portion included in other current liabilities	23		10
Long-term portion included in other long-term liabilities	77		46
Total finance lease liabilities	100		56
Total lease liabilities	$	9,107	$	6,937

Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2020 was $0.6 million and was included in net cash used in operating activities in the consolidated statements of cash flows.

As of March 31, 2020, the maturities of the Company’s operating lease liabilities were as follows:

	Operating leases
Within 1 year	$	2,003
1 to 2 years	2,212
2 to 3 years	1,472
3 to 4 years	1,514
4 to 5 years	1,556
Thereafter	794
Total operating lease payments	9,551
Less:
Imputed interest	(544)
Operating lease liabilities	$	9,007

As of March 31, 2020, the weighted average remaining lease term is 4.6 years and the discount rate used to determine the operating lease liability was 4.6% for leases in Canadian dollars and 2.7% for leases in U.S. dollars.

During the three months ended March 31, 2020, the Company incurred total operating lease expenses of $912, which included lease expenses associated with fixed lease payments of $824, and variable payments associated with common area maintenance and similar expenses of $88.

In addition to the operating lease liabilities included in the table above, the Company has commitments for future operating lease payments of $20.3 million under the terms of the lease for the Company’s future head office, which is expected to commence in September 2021.

The Company also leases office equipment under finance lease agreements. As of March 31, 2020, the maturities of the Company’s finance lease liabilities were as follows:

	Finance leases
Within 1 year	$	25
1 to 2 years	20
2 to 3 years	14
3 to 4 years	10
4 to 5 years	36
Total finance lease payments	105
Less:
Imputed interest	(5)
Finance lease liabilities	100