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LEASES | 9 Months Ended
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Sep. 30, 2021
LEASES |
LEASES | NOTE 7 LEASES In October 2014, we entered into an agreement (the Office Agreement) with Fortress Biotech, Inc. (FBIO) to occupy approximately 45% of the 24,000 square feet of New York City office space leased by FBIO. The Office Agreement requires us to pay our respective share of the average annual rent and other costs of the 15-year lease. We approximate an average annual rental obligation of $1.4 million under the Office Agreement. We began to occupy this new space in April 2016, with rental payments beginning in the third quarter of 2016. At January 1, 2019, we recognized a lease liability and corresponding Right-of-Use (ROU) asset of $9.5 million and $8.1 million, respectively, based on the present value of the remaining lease payments for all of our leased office spaces, the majority of which is comprised of our New York City office space. The present values of our lease liability and corresponding ROU asset are $11.5 million and $8.8 million, respectively, as of September 30, 2021. Our leases have remaining lease terms of 2 years to 10 years. One lease has a renewal option to extend the lease for an additional term of two years. The initial commitment period of the 45% rate was for a period of three (3) years. We and FBIO currently determine actual office space utilization annually and if our utilization differs from the amount we have been billed, we will either receive credits or be assessed incremental utilization charges. As of September 30, 2021, the allocation rate is 65% and will be evaluated again in November 2021 for the following rent year. Also in connection with this lease, we have pledged $1.2 million to secure a line of credit as a security deposit for the Office Agreement, which has been recorded as restricted cash in the accompanying condensed consolidated balance sheets. In October 2019, we finalized a five-year lease for office space in New Jersey (the NJ Lease). We approximate an average annual rental obligation of $0.3 million under the NJ Lease. We took possession of this space in October 2019, with rental payments beginning in November 2019. We incurred rent expense of $0.2 million for the nine months ended September 30, 2021. The following components of lease expense are included in the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three months ended | ​ | Nine months ended
​ |  | September 30, | ​ | September 30,
(in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost | ​ | $ | 532 | ​ | $ | 534 | ​ | $ | 1,595 | ​ | $ | 1,611
Net lease cost | ​ | $ | 532 | ​ | $ | 534 | ​ | $ | 1,595 | ​ | $ | 1,611
​ As of September 30, 2021, the weighted-average remaining operating lease term was 7.4 years and the weighted-average discount rate for operating leases was 10.25%. Cash paid for amounts included in the measurement of operating lease liabilities during the nine months ended September 30, 2021 was $1.5 million. The balance sheet classification of lease liabilities was as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | December 31,
(in thousands) |  | 2021 |  | 2020
Liabilities |  | ​ |  |  | ​ |
Lease liability current portion | ​ | $ | 1,468 | ​ | $ | 1,669
Lease liability non-current | ​ |  | 10,020 | ​ |  | 10,412
Total lease liability | ​ | $ | 11,488 | ​ | $ | 12,081
​ As of September 30, 2021, the maturities of lease liabilities were as follows:
​ | ​ | ​ | ​
​ |  | Operating
(in thousands) |  | ​ | leases
Remainder of 2021 | ​ | $ | 505
2022 | ​ | ​ | 2,035
2023 | ​ |  | 2,040
2024 | ​ |  | 1,924
2025 | ​ |  | 1,653
After 2026 | ​ |  | 9,889
Total lease payments | ​ |  | 18,046
Less: interest | ​ |  | (6,558)
Present value of lease liabilities(*) | ​ | $ | 11,488
(*) | As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date and considering the term of the lease to determine the present value of lease payments. We used the incremental borrowing rate of 10.25% on February 28, 2019, for operating leases that commenced prior to that date.

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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