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Commitments and Contingencies
6 Months Ended
Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

6.

Commitments and Contingencies

Operating Leases

The Company leases office space in Oakwood Village, Ohio, Mountain View, California and Denver, Colorado under noncancelable operating lease agreements. The Company leases and occupies approximately 19,800 square feet of office space in Oakwood Village, Ohio, which expires in October 2021.

In June 2014, the Company entered into an office lease agreement to lease approximately 25,500 square feet of office space located in Mountain View, California, which expires in November 2019. In June 2018, the Company entered into an amendment to extend the term of the lease agreement through July 2025.

In April 2018, the Company entered into a lease agreement to lease approximately 24,600 square feet of additional office space located in Mountain View, California. The lease commenced in December 2018 and will expire in December 2025. The Company has the option to extend the term of the lease for a period of up to five years.

In May 2019, the Company entered into a sub-lease agreement to lease approximately 19,800 square feet of office space located in Denver, Colorado. The sub-lease commenced in June 2019 and will expire in May 2021.

In recognition of the right-of-use assets and the related lease liabilities, with the exception of the Oakwood Village, Ohio lease, the options to extend the lease term have not been included as the Company is not reasonably certain that it will exercise any such option. At June 30, 2019, the weighted-average remaining lease term in years is 5.7 years and the weighted-average discount rate used is 7.7%.


During the three and six months ended June 30, 2019, the Company recognized the following lease costs arising from lease transactions:  

 

 

 

Three Months Ended June 30, 2019

 

 

Six Months Ended June 30, 2019

 

Operating lease cost

 

$

677

 

 

$

1,303

 

 

During the six months ended June 30, 2019, the Company recognized the following cash flow transactions arising from lease transactions:

 

 

 

For the Six Months Ended June 30, 2019

 

Cash paid for amounts included in the measurement of lease liabilities

 

$

1,074

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

1,647

 

 

At June 30, 2019, the future payments and interest expense for the operating leases are as follows:

 

Year Ending December 31,

 

Future Payments

 

The remainder of 2019

 

$

1,377

 

2020

 

 

3,148

 

2021

 

 

2,831

 

2022

 

 

2,496

 

2023

 

 

2,571

 

2024

 

 

2,604

 

Thereafter

 

 

1,924

 

Total undiscounted cash flows

 

$

16,951

 

Less: imputed interest

 

 

(3,333

)

Present value of lease liabilities

 

$

13,618

 

The rent expense for operating leases for the three and six months ended June 30, 2018 using the accounting guidance in effect at that time was $0.2 million and $0.4 million, respectively.

At December 31, 2018, the future minimum payments for the operating leases were as follows (in thousands):

 

Year Ending December 31,

 

Future Minimum

Payments

 

2019

 

$

2,070

 

2020

 

 

2,353

 

2021

 

 

2,424

 

2022

 

 

2,496

 

2023

 

 

2,571

 

Thereafter

 

 

4,532

 

Total future minimum payments

 

$

16,446

 

Legal Proceedings

In the normal course of business, the Company may become involved in legal proceedings. The Company will accrue a liability for legal proceedings when it is probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. At June 30, 2019 and December 31, 2018, the Company was not involved in any material legal proceedings.

Purchase Commitments

At June 30, 2019, the Company had $6.4 million in outstanding firm purchase commitments.