11. Leases

The Company has operating leases for office space and laboratory facilities, and finance leases for fleet vehicles leased for its sales force and laboratory equipment. The components of lease expense were as follows:


	Three Months Ended
	March 31,
	2019
Operating lease expense	$	143

Finance Leases:
Amortization of right-to-use assets	$	170
Interest expense		38
Total finance lease expenses	$	208

During the three months ended March 31, 2018 the Company recorded $276 of rent expense which was recognized on a straight-line basis over the term of the lease.

Operating Leases

Agreements for Office Space

In November 2017, the Company entered into a sublease agreement with Auxilium Pharmaceuticals, LLC (the “Sublandlord”) pursuant to which it subleases 33,019 square feet of office space for its headquarters in Wayne, Pennsylvania. Subject to the consent of Chesterbrook Partners, LP (“Landlord”) as set forth in the lease by and between them and Sublandlord, the sublease has a term that runs through October 2023. If for any reason the lease between the Landlord and Sublandlord is terminated or expires prior to October 2023, the Company’s sublease will automatically terminate.

In February 2019, the Company entered into a sublease agreement with a third party for 21,056 square feet of office and laboratory space in St. Louis, Missouri with total future total rent payments of $3,538. The Company has also agreed to pay $1,472 of the total renovation and improvement costs incurred by the landlord, which is collateralized by a standby letter of credit held by the Company. The lease term commences on the first day of the month following the landlord’s completion of renovations to the building and continues for a period of 10 years. The Company expects the lease term to commence by the end of the first half of 2019.

Supplemental balance sheet information related to operating leases is as follows:


		March 31,
Operating Leases:	2019
Gross cost	$	2,156
Accumulated amortization		(88)
Operating lease right-of-use assets	$	2,068

Other current liabilities	$	373
Other liabilities		1,851
Total operating lease liabilities	$	2,224

Finance Leases

Laboratory Equipment

The Company leases laboratory equipment which is used in its laboratory space in St. Louis, Missouri under two lease financing arrangements which the Company entered into in August 2017 and October 2017, respectively. The leases have terms which end in October 2020 and December 2020, respectively.

Fleet Vehicles

The Company leases automobiles for its sales force and other field-based employees under the terms of a master lease agreement with a third party. The lease term for each automobile begins on the date the Company takes delivery and continues for a period of four years.

Supplemental balance sheet information related to finance leases is as follows:


		March 31,
Finance Leases:	2019
Property and equipment, gross	$	2,557
Accumulated depreciation		(620)
Property and equipment, net	$	1,937

Other current liabilities	$	495
Other liabilities		1,301
Total finance lease liabilities	$	1,796

Supplemental information related to operating and finance leases is as follows:


	Three Months Ended
	March 31,
Supplemental Cash Flow Lease Information:	2019
Operating cash flows from operating leases	$	141
Operating cash flows from finance leases		31
Financing cash flows from finance leases		120

Lease liabilities arising from new operating leases	$	—
Lease liabilities arising from new finance leases		—


Weighted-Average Remaining Lease Term (in years):
Operating leases		4.58
Finance leases		2.97

Weighted-Average Discount Rate:
Operating leases		6.97	%
Finance leases		10.10	%

Future maturities of lease liabilities under operating and finance leases as of March 31, 2019 are as follows:


		Operating		Finance
Year Ending December 31,		Leases		Leases
2019	$	431	$	443
2020		589		567
2021		605		448
2022		622		169
2023		532		—
Total undiscounted lease payments		2,779		1,627
Less: unrecognized interest		(555)		(217)
Plus: residual value guarantees		—		386
Total lease liability	$	2,224	$	1,796

The undiscounted lease payments presented in the table above are consistent with the future minimum lease payments disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on March 18, 2019 under the prior lease guidance.