Right-of-use asset and lease liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Right-of-use asset and lease liabilities

Schedule of lease cost, balance sheet and cash flow information

The components of lease cost were as follows:

	Three months ended March 31,
	2020		2019
	(in thousands)
Operating lease cost	$	1,290	$	897
Variable lease cost		145		4
Sublease income		(248)		(268)
Total lease cost	$	1,187	$	633

The table below presents the lease-related assets and liabilities recorded on the Consolidated balance sheets.

	March 31,		December 31,
	2020		2019
	(in thousands)
Assets
Operating lease right-of-use assets	$	26,288		26,797
Liabilities
Current
Current operating lease liabilities		5,900		5,865
Non-current
Non-current operating lease liabilities		30,518		31,133
Total lease liabilities	$	36,418		36,998

Other information

The weighted-average remaining lease term as of March 31, 2020 is 10.1 years, compared to 10.3 years as of December 31, 2019 and the weighted-average discount rate as of March 31, 2020 is 11.33%, compared to 11.33% as of December 31, 2019. The Company derived the discount rate, adjusted for differences such as in the term and payment patterns, from the Company’s loan from Hercules Capital which was refinanced immediately prior to the January 1, 2019 adoption date in December 2018.

The table below presents supplemental cash flow and non-cash information related to leases.

	Three months ended March 31,
	2020		2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	1,424	$	1,413

Besides the initial recognition of operating right-of-use assets of $19.0 million upon adoption of the new lease standards on January 1, 2019, the Company did not obtain any additional right-of-use assets in exchange for lease obligations in the three months ended March 31, 2020 and March 31, 2019.

Schedule of undiscounted cash flows and minimum lease payments

	Lexington		Amsterdam1)		Other1)		Total
	(in thousands)
2020 (nine months remaining)	$	2,535	$	1,855	$	139	$	4,529
2021		3,455		1,855		139		5,449
2022		3,552		1,855		—		5,407
2023		3,650		1,855		—		5,505
2024		4,146		1,855		—		6,001
Thereafter		20,745		12,833		—		33,578
Total lease payments	$	38,083	$	22,108	$	278	$	60,469
Less: amount of lease payments representing interest payments		(14,400)		(9,639)		(12)		(24,051)
Present value of lease payments		23,683		12,469		266		36,418
Less: current operating lease liabilities		(3,383)		(2,319)		(198)		(5,900)
Non-current operating lease liabilities	$	20,300	$	10,150	$	68	$	30,518

(¹⁾ Payments are due in EUR and have been translated at the foreign exchange rate as of March 31, 2020, of $1.10/ €1.00).