Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.1
Leases
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases

13. Leases

 

As described in Note 1, effective January 1, 2019, the Company adopted ASC 842 using the optional transition method, applying no practical expedients. In accordance with the optional transition method, we did not recast the prior period consolidated financial statements. The lease term is the noncancelable period of the lease. There are no termination provisions or renewal periods reasonably certain of exercise or options controlled by the lessor. Finance leases, variable lease costs and short-term leases are not material to our consolidated financial statements.


The Company leases office space under operating leases. Total lease costs, consisting of fixed operating lease costs, in the three months ended March 31, 2019 amounted to $66,895.


As of March 31, 2019, lease liabilities have been determined using a weighted-average discount rate of approximately 8.6%. The rate implicit in the Company’s leases is not readily determinable. Accordingly, the Company uses its estimated incremental borrowing rate, which represents the rate of interest that it would pay to borrow on a collateralized basis over a similar term.


The weighted-average life of the Company’s leases is approximately 3.6 years. Operating cash flows in the three months ended March 31, 2019 include $67,521 of payments related to lease liabilities at the beginning of the period. 


Maturities of operating lease liabilities as of March 31, 2019 were as follows:


Year ending December 31:

 

 

 

 

 

 

 

April 1 through December 31, 2019

 

$

166,238

 

2020

 

 

115,580

 

2021

 

 

118,158

 

2022

 

 

120,737

 

2023

 

 

20,195

 

Total lease payments

 

 

540,908

 

Less: imputed interest

 

 

(69,769

)

Present value of operating lease liabilities

 

$

471,139

 


In April 2019, the Company entered into a 96-month lease for office and laboratory space that is expected to commence upon the expiration of an existing lease in September 2019. Scheduled lease payments under the new lease total approximately $1.8 million.