Operating Leases

6 Months Ended

Jun. 30, 2020

Note 10—Operating Leases

The Company leases approximately 50,800 square feet of office space for its corporate headquarters and manufacturing facility in Carlsbad, California under a noncancelable operating lease that expires on December 31, 2022. The lease is subject to variable charges for common area maintenance and other costs that are determined annually based on actual costs. The base rent is subject to an annual increase each year. The Company has a renewal option for an additional five-year term upon the expiration date of the lease, which has been excluded from the calculation of the

right-of-use

asset as it is not reasonably certain to be exercised.

The Company also leases approximately 3,900 square feet of office space in Zaventem, Belgium under a noncancelable operating lease that expires on December 31. 2021. The lease is subject to variable charges that are determined annually for common area maintenance and other costs based on actual costs, and base rent is subject to an annual increase each year based on an index rate. The Company has a renewal option for an additional three-year term upon the expiration date of the lease, which has been included in the calculation of the

right-of-use

asset as it is reasonably certain to be exercised.

The following table summarizes quantitative information about the Company’s operating leases for the six months ended June 30, 2020 and 2019 (dollars in thousands):


	Six Months Ended June 30,
	2020			2019
	(unaudited)
Operating cash flows used in operating leases	$	507		$	477
Right-of-use assets exchanged for operating lease liabilities	$	—		$	2,978
Weighted-average remaining lease term – operating leases		1.8 years			2.3 years
Weighted-average discount rate – operating leases		7.0	%		7.0	%

The following table provides the components of the Company’s lease cost (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(unaudited)				(unaudited)
Operating leases
Operating lease cost	$	216	$	216	$	432	$	432
Variable lease cost		92		40		165		104


Total rent expense	$	308	$	256	$	597	$	536

As of June 30, 2020, future minimum payments under the

non-cancelable

operating leases under ASC 842 were as follows (in thousands):


Six months ending December 31, 2020	$	507
Year ending December 31, 2021		1,044
Year ending December 31, 2022		1,074
Year ending December 31, 2023		51
Year ending December 31, 2024		51

Total		2,727
Less: present value discount		(251	)

Operating lease liabilities	$	2,476