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COMMITMENTS AND CONTINGENCIES | 6 Months Ended
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Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | NOTE 7 – COMMITMENTS AND CONTINGENCIES Operating Leases We lease space under operating leases for manufacturing and laboratory facilities and administrative offices in Cleveland, Ohio, as well as administrative offices in New York, New York. We also lease office space in Madrid, Spain as well as certain office equipment under operating leases, which have a non-cancelable lease term of less than one year and, therefore, we have elected the practical expedient to exclude these short-term leases from our right-of-use assets and lease liabilities. Components of lease cost are as follows: SCHEDULE OF COMPONENTS OF LEASE COST
|  | For the three months ended June 30, |  |  | For the three months ended June 30, |  |  | For the six months ended June 30, |  |  | For the six months ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Operating lease cost |  | $ | 434,000 |  |  | $ | 434,000 |  |  | $ | 868,000 |  |  | $ | 723,000 |
Variable lease cost |  | $ | 92,000 |  |  | $ | 86,000 |  |  | $ | 175,000 |  |  | $ | 159,000 |
Short-term lease cost |  | $ | 6,000 |  |  | $ | 34,000 |  |  | $ | 24,000 |  |  | $ | 81,000 |
The following table presents information about the amount and timing of cash flows arising from operating leases as of June 30, 2020: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES
Maturity of lease liabilities: |  |  |
2020, remainder |  | $ | 851,000 |
2021 |  |  | 1,713,000 |
2022 |  |  | 1,727,000 |
2023 |  |  | 1,741,000 |
2024 |  |  | 1,781,000 |
Thereafter |  |  | 1,885,000 |
Total undiscounted operating lease payments |  |  | 9,698,000 |
Less: imputed interest |  |  | 2,224,000 |
Present value of operating lease liabilities |  | $ | 7,474,000 |
Balance sheet classification: |  |  |  |
Current portion of lease liability |  | $ | 1,706,000 |
Long-term lease liability |  |  | 5,768,000 |
Total operating lease liabilities |  | $ | 7,474,000 |
Other information: |  |  |  |
Weighted-average remaining lease term for operating leases |  |  | 67 months |
Weighted-average discount rate for operating leases |  |  | 9.6% |
Commitment with contract manufacturer We engaged a contract manufacturer to assist us with developing and defining the processes necessary to manufacture our RDEB product candidate and had a remaining commitment of $6.3 million at March 31, 2020. During the second quarter of 2020, we cancelled the remaining stages of work with the contract manufacturer. We have no remaining commitment at June 30, 2020. Arbitration Proceeding We are currently engaged in an arbitration proceeding with REGENXBIO regarding the former license agreement between the parties relating to use of the AAV9 capsid in our MPS IIIA, MPS IIIB, CLN1, and CLN3 programs. The license terminated on May 2, 2020, and on May 25, 2020, we filed an arbitration claim with the American Arbitration Association alleging that REGENXBIO materially breached the license agreement prior to termination and seeking, among other things, a declaration that as a result of REGENXBIO’s material breach, we are not responsible for payments totaling $28 million (which would otherwise have been due in 2020) plus accrued interest of $0.8 million as of June 30, 2020. REGENXBIO disputes our arbitration claim and has filed a counterclaim seeking payment of these amounts. No arbitration schedule has yet been set by the three-arbitrator panel.

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