Note

– Lease Obligations and Other Contingencies

The Company leases certain assets under operating leases, which primarily consisted of real estate leases, laboratory equipment leases and office equipment leases at

March 31, 2020.

Certain operating leases provide for renewal options, which can vary by lease. The right-of-use asset and lease liabilities on the Company’s Consolidated Balance Sheet represent payments over the lease term, which includes renewal options for certain real estate leases that we are likely to exercise. As part of the Company’s assessment of the lease term, the Company elected the hindsight practical expedient, which allows companies to use current knowledge and expectations when determining the likelihood to extend lease options. Renewal options for our leases range from

years in length and begin from

2023

through

2026.

The weighted average lease term for the Company’s operating leases was

13.5

years. The discount rate used in the calculation of the Company’s right-of-use asset and lease liability was determined based on the stated rate within each contract when available, or the Company’s collateralized borrowing rate from lending institutions. The weighted average discount rate for the Company’s operating leases was

12.7%.

The Company has

not

made any residual value guarantees related to its operating leases; therefore, the Company has

corresponding liability recorded on its Consolidated Balance Sheets.

Aggregate lease expense under operating leases was

$448

and

$309

for the

three

-month periods ended

March 31, 2020

and

March 31, 2019,

respectively. Certain operating leases include rent escalation provisions, which the Company recognizes as expense on a straight-line basis. Lease expense for leases with an initial term of

twelve

months or less was

not

material.

Future lease payments for assets under operating leases as of

March 31, 2020,

are as follows:

Remaining Maturities of Lease Liabilities Year Ending December 31,	Operating Leases
2020	$	1,257
2021		645
2022		582
2023		563
2024		568
Thereafter		7,903
Total lease payments		11,518
Less imputed interest		6,488
Total	$	5,030

Of the Company’s total lease liability,

$1,301

is a current liability and

$3,729

is a long-term liability at

March 31, 2020.

The current and long-term portions of the Company’s lease liability are presented within “Accrued expenses” and “Other non-current liabilities” on the Consolidated Balance Sheets. The Company’s right-of use asset balance associated with operating leases totaled

$3,811

March 31, 2020.

This amount is presented within “Other long-term assets” on the Consolidated Balance Sheets.