11. Leases

The Company has operating leases for office space and laboratory facilities, and finance leases for its laboratory equipment. As a result of the Company’s decision to actively seek partners for its commercial products (see Note 2), the Company terminated the finance leases for its fleet vehicles and recognized a loss on lease termination of $306 in the three months ended September 30, 2019. The components of lease expense were as follows:


	Nine Months Ended
	September 30,
	2019
Operating lease expense	$	555

Finance Leases:
Amortization of right-to-use assets	$	416
Interest expense		84
Total finance lease expenses	$	500

During the three and nine months ended September 30, 2018 the Company recorded $204 and $682, respectively, 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 commenced in June 2019 and has a term that runs through June 2029.

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


		September 30,
Operating Leases:	2019
Gross cost	$	5,213
Accumulated amortization		(331)
Operating lease right-of-use assets	$	4,882

Other current liabilities	$	507
Other liabilities		3,686
Total operating lease liabilities	$	4,193

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 leased 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 began on the date the Company took delivery and continued for a period of four years. The Company returned all leased vehicles during the three months ended September 30, 2019.

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


		September 30,
Finance Leases:	2019
Property and equipment, gross	$	435
Accumulated depreciation		(296)
Property and equipment, net	$	139

Other current liabilities	$	135
Other liabilities		159
Total finance lease liabilities	$	294

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


	Nine Months Ended
	September 30,
Supplemental Cash Flow Lease Information:	2019
Operating cash flows from operating leases	$	530
Operating cash flows from finance leases		86
Financing cash flows from finance leases		447

Leased assets obtained in exchange for new operating lease liabilities	$	3,060


Weighted-Average Remaining Lease Term (in years):
Operating leases		6.98
Finance leases		0.89

Weighted-Average Discount Rate:
Operating leases		10.10	%
Finance leases		9.96	%

Future maturities of lease liabilities under operating and finance leases as of September 30, 2019 are as follows:


		Operating		Finance
Year Ending December 31,		Leases		Leases
2019	$	223	$	36
2020		909		116
2021		934		—
2022		959		—
2023		877		—
Thereafter		2,024		—
Total undiscounted lease payments		5,926		152
Less: unrecognized interest		(1,733)		(8)
Total lease liability	$	4,193	$	144

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, with the exception of the undiscounted lease payments related to leased vehicles, which were returned during the three months ended September 30, 2019.