LEASES

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

LEASES

The Company has non-cancelable operating leases for its offices and laboratory facility, automobiles used by its sales force, and certain operating leases for office equipment.

The Company relocated its corporate headquarters from Newark, California to Lake Forest in 2018 and subsequently entered into two subleases which, together, account for the entirety of the Newark facility. Each sublease contained abated rent periods resulting in reduced operating lease cash flows through May 2019. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain (loss) in the Condensed Consolidated Statements of Comprehensive Income. The Company has the right to renew the term of the Lake Forest lease for one period of five years, provided that written notice is made to the Landlord no later than twelve months prior to the expiration of the initial term of the Lease. In connection with the Zyla Merger, the Company assumed an operating lease for offices in Wayne, Pennsylvania and operating leases for automobiles used by its sales force.

The following table reflects lease expense for the three and nine months ended September 30, 2020 and 2019 (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
	Financial Statement Classification	2020		2019		2020		2019
Operating lease cost	Selling, general and administrative expenses	$	424	$	175	$	797	$	540
Operating lease cost	Other gain (loss)	148		148		443		443
Total lease cost		$	572	$	323	$	1,240	$	983
Sublease Income	Other gain (loss)	$	347	$	362	$	1,040	$	1,085

LEASES

LEASES

The Company has non-cancelable operating leases for its offices and laboratory facility, automobiles used by its sales force, and certain operating leases for office equipment.

The Company relocated its corporate headquarters from Newark, California to Lake Forest in 2018 and subsequently entered into two subleases which, together, account for the entirety of the Newark facility. Each sublease contained abated rent periods resulting in reduced operating lease cash flows through May 2019. Operating lease costs and sublease income related to the Newark facility are accounted for in Other gain (loss) in the Condensed Consolidated Statements of Comprehensive Income. The Company has the right to renew the term of the Lake Forest lease for one period of five years, provided that written notice is made to the Landlord no later than twelve months prior to the expiration of the initial term of the Lease. In connection with the Zyla Merger, the Company assumed an operating lease for offices in Wayne, Pennsylvania and operating leases for automobiles used by its sales force.

The following table reflects lease expense for the three and nine months ended September 30, 2020 and 2019 (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
	Financial Statement Classification	2020		2019		2020		2019
Operating lease cost	Selling, general and administrative expenses	$	424	$	175	$	797	$	540
Operating lease cost	Other gain (loss)	148		148		443		443
Total lease cost		$	572	$	323	$	1,240	$	983
Sublease Income	Other gain (loss)	$	347	$	362	$	1,040	$	1,085