Leases

3 Months Ended

Mar. 31, 2019

Leases:

The Company has one operating lease for research laboratories and office space in Burnaby, British Columbia for a 120-month term from April 1, 2012 to March 31, 2022.

Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As the Company’s operating lease does not provide an implicit rate, the discount rate used to determine the present value of the lease payments is the collateralized incremental borrowing rate based on the remaining lease term. The operating lease asset excludes lease incentives. The operating lease contains the option to extend or terminate the lease term at the Company’s discretion. Renewal and termination options are included in the lease term when it is reasonably certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term.

The cost components of our operating lease were as follows for the period ended March 31, 2019:

Lease Cost
Operating lease expense	$	109
Variable lease expense⁽¹⁾		179
Lease Term and Discount Rate
Remaining lease term (years)	3
Discount rate		3.75	%

⁽¹⁾

Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments.

Future minimum lease payments as of March 31, 2019 were as follows:

Year ending December 31:
2019 (remainder of the year)	$	466
2020		621
2021		587
2022		140
Total future minimum lease payments	$	1,814
Less: imputed interest		(78	)
Less: future lease incentives reasonably certain of use		(432	)
Present value of lease liabilities	$	1,304