XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.22.1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2022
Leases [Abstract] |
Leases | Leases The Company adopted ASC 842, Leases, as of January 1, 2022. Prior period amounts have not been adjusted and continue to be reported in accordance with the Company's historic accounting under ASC 840, Leases. Operating Leases The Company leases office and laboratory spaces in Vista, California, under leases that expire in April 2027, with an option to extend portions of the leases for additional 5-year periods. The Company has not included the optional renewal periods in the measurement of the lease liabilities because it is not reasonably certain that the Company will exercise these renewal options. The Company's lease payments under each of these leases are subject to escalation clauses. Effective on August 23, 2021, the Company entered into a sub-lease agreement for an additional office space in Carlsbad, California. The sub-lease commenced in October 2021 and expires in April 2027. The sub-lease agreement provides for monthly base rent of $66,021 which began on October 1, 2021, and such amount shall increase by approximately 3% annually beginning October 1, 2022. The Company is entitled to base rent abatement for a specified period of time which began on November 1, 2021. The Company determines if a contract contains a lease at inception or modification of a contract. The Company discounts their lease obligations using its incremental borrowing rate at the commencement date. The incremental borrowing rate is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The Company primarily considers industry data, its credit rating and the lease term to determine its incremental borrowing rate. Finance Leases The Company has entered into various finance lease agreements to obtain laboratory equipment. The terms of the Company's finance leases generally range from three to five years and are typically secured by the underlying equipment. The portion of the future payments designated as principal repayments were classified as finance lease liabilities on the Company's balance sheet. Operating and Finance Leases Balances and Costs Operating and finance leases consist of the following (in thousands):
Lease Balance |  | Classification |  | March 31, 2022
Lease Assets |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 5,633 |
Finance |  | Property and equipment, net |  | $ | 1,370 |
Lease Liabilities |  |  |  |
Current |  |  |  |
Operating |  | Operating lease liabilities |  | $ | 949 |
Finance |  | Accrued and other current liabilities |  | $ | 592 |
Non-current |  |  |  |
Operating |  | Non-current operating lease liabilities |  | $ | 5,284 |
Finance |  | Other non-current liabilities |  | $ | 744 |
Costs associated with the Company's leases were included in the statements of operations as follows (in thousands):
Lease Cost |  | Three months ended March 31, 2022
Operating leases |  |
Operating lease cost(1) |  | $ | 389 |
Finance lease cost |  |
Amortization of lease assets |  | 158 |
Interest on finance lease liabilities |  | 19 |
Total lease cost |  | $ | 566 |
(1) Includes variable lease cost of $42,000 for the three months ended March 31, 2022. Supplemental cash flow information on leases is as follows (in thousands):
Cash paid for amounts included in the measurement of lease liabilities |  | Three months ended March 31, 2022
Operating cash out flows from operating leases |  | $ | 282 |
Operating cash out flows from interest paid on finance leases |  | $ | 19 |
Financing cash out flows from finance leases |  | $ | 146 |
Information regarding the weighted-average lease term and weighted average discount rate are as follows:
|  | March 31, 2022
Weighted-average remaining lease term (years) |  |
Operating leases |  | 5.1
Finance leases |  | 2.5
Weighted-average discount rate |  |
Operating leases |  | 8.0 | %
Finance leases |  | 5.4 | %
Future payments under operating and finance leases as of March 31, 2022 are as follows (in thousands):
|  | Operating Leases |  | Finance Leases
2022 (remaining) |  | $ | 1,055 |  |  | $ | 488 |
2023 |  | 1,446 |  |  | 566 |
2024 |  | 1,489 |  |  | 313 |
2025 |  | 1,533 |  |  | 66 |
2026 |  | 1,584 |  |  | — |
Thereafter |  | 539 |  |  | — |
Total minimum lease payments |  | 7,646 |  |  | 1,433 |
Less: imputed interest |  | (1,413) |  |  | (97) |
Total lease liabilities |  | 6,233 |  |  | 1,336 |
Less: current portion |  | (949) |  |  | (592) |
Lease obligations, net of current portion |  | $ | 5,284 |  |  | $ | 744 |
Disclosures Under ASC 840 Minimum annual lease payments under non-cancelable operating lease arrangements at December 31, 2021 are as follows (in thousands):
Years Ending December 31, |  | Operating Leases
2022 |  | $ | 1,337 |
2023 |  | 1,445 |
2024 |  | 1,489 |
2025 |  | 1,533 |
2026 |  | 1,584 |
Thereafter |  | 539 |
Total minimum lease payments |  | $ | 7,927 |
For the three months ended March 31, 2021, rent expense was $0.2 million.
Leases | Leases The Company adopted ASC 842, Leases, as of January 1, 2022. Prior period amounts have not been adjusted and continue to be reported in accordance with the Company's historic accounting under ASC 840, Leases. Operating Leases The Company leases office and laboratory spaces in Vista, California, under leases that expire in April 2027, with an option to extend portions of the leases for additional 5-year periods. The Company has not included the optional renewal periods in the measurement of the lease liabilities because it is not reasonably certain that the Company will exercise these renewal options. The Company's lease payments under each of these leases are subject to escalation clauses. Effective on August 23, 2021, the Company entered into a sub-lease agreement for an additional office space in Carlsbad, California. The sub-lease commenced in October 2021 and expires in April 2027. The sub-lease agreement provides for monthly base rent of $66,021 which began on October 1, 2021, and such amount shall increase by approximately 3% annually beginning October 1, 2022. The Company is entitled to base rent abatement for a specified period of time which began on November 1, 2021. The Company determines if a contract contains a lease at inception or modification of a contract. The Company discounts their lease obligations using its incremental borrowing rate at the commencement date. The incremental borrowing rate is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The Company primarily considers industry data, its credit rating and the lease term to determine its incremental borrowing rate. Finance Leases The Company has entered into various finance lease agreements to obtain laboratory equipment. The terms of the Company's finance leases generally range from three to five years and are typically secured by the underlying equipment. The portion of the future payments designated as principal repayments were classified as finance lease liabilities on the Company's balance sheet. Operating and Finance Leases Balances and Costs Operating and finance leases consist of the following (in thousands):
Lease Balance |  | Classification |  | March 31, 2022
Lease Assets |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 5,633 |
Finance |  | Property and equipment, net |  | $ | 1,370 |
Lease Liabilities |  |  |  |
Current |  |  |  |
Operating |  | Operating lease liabilities |  | $ | 949 |
Finance |  | Accrued and other current liabilities |  | $ | 592 |
Non-current |  |  |  |
Operating |  | Non-current operating lease liabilities |  | $ | 5,284 |
Finance |  | Other non-current liabilities |  | $ | 744 |
Costs associated with the Company's leases were included in the statements of operations as follows (in thousands):
Lease Cost |  | Three months ended March 31, 2022
Operating leases |  |
Operating lease cost(1) |  | $ | 389 |
Finance lease cost |  |
Amortization of lease assets |  | 158 |
Interest on finance lease liabilities |  | 19 |
Total lease cost |  | $ | 566 |
(1) Includes variable lease cost of $42,000 for the three months ended March 31, 2022. Supplemental cash flow information on leases is as follows (in thousands):
Cash paid for amounts included in the measurement of lease liabilities |  | Three months ended March 31, 2022
Operating cash out flows from operating leases |  | $ | 282 |
Operating cash out flows from interest paid on finance leases |  | $ | 19 |
Financing cash out flows from finance leases |  | $ | 146 |
Information regarding the weighted-average lease term and weighted average discount rate are as follows:
|  | March 31, 2022
Weighted-average remaining lease term (years) |  |
Operating leases |  | 5.1
Finance leases |  | 2.5
Weighted-average discount rate |  |
Operating leases |  | 8.0 | %
Finance leases |  | 5.4 | %
Future payments under operating and finance leases as of March 31, 2022 are as follows (in thousands):
|  | Operating Leases |  | Finance Leases
2022 (remaining) |  | $ | 1,055 |  |  | $ | 488 |
2023 |  | 1,446 |  |  | 566 |
2024 |  | 1,489 |  |  | 313 |
2025 |  | 1,533 |  |  | 66 |
2026 |  | 1,584 |  |  | — |
Thereafter |  | 539 |  |  | — |
Total minimum lease payments |  | 7,646 |  |  | 1,433 |
Less: imputed interest |  | (1,413) |  |  | (97) |
Total lease liabilities |  | 6,233 |  |  | 1,336 |
Less: current portion |  | (949) |  |  | (592) |
Lease obligations, net of current portion |  | $ | 5,284 |  |  | $ | 744 |
Disclosures Under ASC 840 Minimum annual lease payments under non-cancelable operating lease arrangements at December 31, 2021 are as follows (in thousands):
Years Ending December 31, |  | Operating Leases
2022 |  | $ | 1,337 |
2023 |  | 1,445 |
2024 |  | 1,489 |
2025 |  | 1,533 |
2026 |  | 1,584 |
Thereafter |  | 539 |
Total minimum lease payments |  | $ | 7,927 |
For the three months ended March 31, 2021, rent expense was $0.2 million.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration