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Leases | 9 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
Leases | LeasesWe lease certain office facilities and equipment primarily under various operating leases. Our leases have remaining contractual terms up to ten years, some of which include options to extend the leases for up to five years. Our lease agreements do not contain any material residual value guarantees, material restrictive covenants, or material termination options. Our operating lease costs are primarily related to facility leases for administration offices and research and development facilities, and our finance leases are primarily related to our right to use the equipment under the agreement with Hovione, our third-party manufacturer, to exclusively manufacture Captisol. Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and adjusted for lease incentives and other items as prescribed by ASC Topic 842, Leases. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. In addition to base rent, certain of our operating leases require variable payments, such as insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Operating and Finance Lease Assets and Liabilities (in thousands):
Assets | September 30, 2022 |  | December 31, 2021
Operating lease assets | $ | 32,108 |  |  | $ | 16,542 |
Finance lease assets | 14,444 |  |  | 16,207 |
Total lease assets | $ | 46,552 |  |  | $ | 32,749 |
Liabilities |  |  |
Current operating lease liabilities | $ | 2,345 |  |  | $ | 2,053 |
Current finance lease liabilities | 48 |  |  | 46 |
| 2,393 |  |  | 2,099 |
Long-term operating lease liabilities | 34,893 |  |  | 15,494 |
Long-term finance lease liabilities | 14 |  |  | 58 |
Total lease liabilities | $ | 37,300 |  |  | $ | 17,651 |
During the three and nine months ended September 30, 2022, we entered into several lease agreements and amendments, which resulted in an increase in lease assets of $8.3 million and $18.4 million, and liabilities of $8.5 million and $21.7 million, respectively. Maturity of Operating and Finance Lease Liabilities as of September 30, 2022 (in thousands):
Maturity Dates | Operating Leases |
Remaining three months ending December 31, 2022 | $ | 1,306 |  |
2023 | 4,842 |  |
2024 | 4,735 |  |
2025 | 4,939 |  |
2026 | 5,242 |  |
2027 | 5,381 |  |
Thereafter | 22,317 |  |
Total lease payments | 48,762 |  |
Less estimated tenant improvement allowance: | (1,030) |  |
Less imputed interest | (10,494) |  |
Present value of lease liabilities | $ | 37,238 |  |
Leases | LeasesWe lease certain office facilities and equipment primarily under various operating leases. Our leases have remaining contractual terms up to ten years, some of which include options to extend the leases for up to five years. Our lease agreements do not contain any material residual value guarantees, material restrictive covenants, or material termination options. Our operating lease costs are primarily related to facility leases for administration offices and research and development facilities, and our finance leases are primarily related to our right to use the equipment under the agreement with Hovione, our third-party manufacturer, to exclusively manufacture Captisol. Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and adjusted for lease incentives and other items as prescribed by ASC Topic 842, Leases. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. In addition to base rent, certain of our operating leases require variable payments, such as insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Operating and Finance Lease Assets and Liabilities (in thousands):
Assets | September 30, 2022 |  | December 31, 2021
Operating lease assets | $ | 32,108 |  |  | $ | 16,542 |
Finance lease assets | 14,444 |  |  | 16,207 |
Total lease assets | $ | 46,552 |  |  | $ | 32,749 |
Liabilities |  |  |
Current operating lease liabilities | $ | 2,345 |  |  | $ | 2,053 |
Current finance lease liabilities | 48 |  |  | 46 |
| 2,393 |  |  | 2,099 |
Long-term operating lease liabilities | 34,893 |  |  | 15,494 |
Long-term finance lease liabilities | 14 |  |  | 58 |
Total lease liabilities | $ | 37,300 |  |  | $ | 17,651 |
During the three and nine months ended September 30, 2022, we entered into several lease agreements and amendments, which resulted in an increase in lease assets of $8.3 million and $18.4 million, and liabilities of $8.5 million and $21.7 million, respectively. Maturity of Operating and Finance Lease Liabilities as of September 30, 2022 (in thousands):
Maturity Dates | Operating Leases |
Remaining three months ending December 31, 2022 | $ | 1,306 |  |
2023 | 4,842 |  |
2024 | 4,735 |  |
2025 | 4,939 |  |
2026 | 5,242 |  |
2027 | 5,381 |  |
Thereafter | 22,317 |  |
Total lease payments | 48,762 |  |
Less estimated tenant improvement allowance: | (1,030) |  |
Less imputed interest | (10,494) |  |
Present value of lease liabilities | $ | 37,238 |  |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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