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Leases
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases

5. Leases

In March 2017, the Company entered into an operating facility lease agreement for approximately 34,500 rentable square feet located at 1020 Marsh Road, Menlo Park, California or the 1020 Space.  The lease commenced in August 2017 for a period of 86 months with one renewal option for a five-year term. The Company did not include the renewal option period as the Company determined it was not reasonably certain the lease would be renewed as of the modification date.

In October 2018, the Company executed a sublease agreement in Palo Alto, California for approximately 4,240 square feet for office space. The rental term of the sublease commenced on October 30, 2018 and expires August 31, 2020.  

During the three months ended March 31, 2019, the Company’s operating lease costs was $0.7 million and cash paid for amounts included in the measurement of lease obligations for operating cash flows from operating leases was $0.7 million. As of March 31, 2019, the Company’s operating leases had a weighted average remaining lease term of 5.6 years and a weighted average discount rate of 7.75%, which approximates the Company’s incremental borrowing rate.

 

 

As of March 31, 2019, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands):

 

Year Ending December 31,

 

 

 

 

2019 (9 months remaining)

 

$

1,994

 

2020

 

 

2,668

 

2021

 

 

2,618

 

2022

 

 

2,697

 

2023

 

 

2,777

 

Thereafter

 

 

2,129

 

Total operating lease payments

 

 

14,883

 

Less imputed interest

 

 

(2,899

)

Total operating lease obligations

 

 

11,984

 

Less current operating lease obligations

 

 

(2,534

)

Noncurrent operating lease obligations

 

$

9,450

 

 

 

1020 Marsh Sublease

In August 2018, the Company entered into an operating sublease agreement with EVA Automation, Inc. (“EVA”) for the 1020 Space referenced above. The 1020 Space Sublease commenced on October 1, 2018 for 72 months.  EVA is entitled to an abatement of base rent of approximately $0.9 million for the first five full calendar months of the term of the sublease. Lease income associated with this sublease is recorded in other income in the accompanying consolidated statement of operations. The Company has recorded lease income associated with this sublease of approximately $0.7 for the three months ended March 31, 2019. There was no sublease income recorded for the three months ended March 31, 2018. This sublease income has been recorded as a receivable in prepaid expenses and other current assets on the accompanying consolidated balance sheet. During the three months ended March 31, 2019, cash received from EVA was $0.3 million, which amount was included in other current assets for operating cash flows.

Future base rent and additional rent EVA shall pay to the Company over the sublease term as of March 31, 2019, are as follows (in thousands):

 

 

 

 

 

 

Year Ending December 31,

 

 

 

 

2019 (9 months remaining)

 

$

1,816

 

2020

 

 

2,479

 

2021

 

 

2,544

 

2022

 

 

2,611

 

2023

 

 

2,680

 

Thereafter

 

 

2,284

 

Total

 

$

14,414