|9 Months Ended|
Sep. 30, 2019
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, the Company 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 and nine months ended September 30, 2019 amounted to $66,895 and $200,684, respectively. As of September 30, 2019, lease liabilities have been determined using a discount rate of approximately 8.6%. The rate implicit in the Companys 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. As of September 30, 2019, the weighted-average remaining life of the Companys leases is approximately 3.4 years. Operating cash flows in the three and nine months ended September 30, 2019 include $69,138 and $205,401, respectively, of payments for amounts included in the measurement of operating lease liabilities.
Maturities of operating lease liabilities as of September 30, 2019 were as follows:
In April 2019, the Company entered into a 96-month lease for office and laboratory space that commenced upon the expiration of an existing lease in October 2019. Scheduled lease payments under the new lease total approximately $1.8 million. As of September 30, 2019, the Company had not taken control of the space and the lease term had not commenced. Accordingly, no right of use asset or lease liability related to the lease has been recorded as of this date. The Company expects to incur approximately $500,000 of the cost of improvements at commencement of the lease.
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef