Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.1
Leases
3 Months Ended
Mar. 31, 2021
Leases  
Leases

13. Leases

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.

 

The Company conducts its operations from leased facilities in Morrisville, North Carolina, San Antonio, Texas and New Brunswick, New Jersey, the leases for which will expire in 2027, 2023 and 2022. The leases are for general office space and lab space and require the Company to pay property taxes, insurance, common area expenses and maintenance costs.

 

Total cash paid for operating leases during the three months ended March 31, 2021 was $0.09 million and is included within cash flows from operating activities within the consolidated statement of cash flows.

 

The Company leases furniture and specialized lab equipment under finance leases. The related right-of-use assets are amortized on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset. The effective interest rate is 6.17%.

 

The Company’s lease cost is reflected in the accompanying statements of operations and comprehensive loss as follows:

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2021

 

For the Three Months Ended March 31, 2020

Operating lease cost

 

$

113,555

 

$

103,956

Finance lease cost

 

 

 

 

 

 

Amortization of lease assets

 

 

29,725

 

 

25,027

Interest on lease liabilities

 

 

3,743

 

 

4,412

Total finance lease cost

 

$

33,468

 

$

29,439

 

 

The weighted average remaining lease term and incremental borrowing rate as of March 31, 2021 were as follows:

 

 

 

 

 

 

Weighted average remaining lease term

 

 

 

 

Operating leases

 

 

6.0

years

Finance leases

 

 

1.7

years

Weighted average discount rate

 

 

 

 

Operating leases

 

 

6.47

%

Finance leases

 

 

6.17

%

 

Maturities of operating and finance lease liabilities as of March 31, 2021 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Leases

    

Finance Leases

    

Total

2021 (excluding the three months ended March 31, 2021)

 

$

278,302

 

$

90,513

 

$

368,815

2022

 

 

360,839

 

 

155,694

 

 

516,533

2023

 

 

244,973

 

 

10,284

 

 

255,257

2024

 

 

231,503

 

 

 -

 

 

231,503

2025

 

 

238,452

 

 

 -

 

 

238,452

2026

 

 

245,606

 

 

 -

 

 

245,606

Thereafter

 

 

209,214

 

 

 -

 

 

209,214

Total minimum lease payments

 

 

1,808,889

 

 

256,491

 

 

2,065,380

Less: imputed interest

 

 

(295,328)

 

 

(14,553)

 

 

(309,881)

Present value of lease liabilities

 

$

1,513,561

 

$

241,938

 

$

1,755,499