Leases

12 Months Ended

Dec. 31, 2020

As described in Note 2. Summary of Significant Accounting Policies, the Company adopted Topic 842 as of January 1, 2019. Prior period amounts have not been adjusted and continue to be reported in accordance with historic accounting under Topic 840.

The Company has non-cancelable operating leases for manufacturing, laboratory, office and warehouse space in Maryland and a non-cancelable operating lease for laboratory and office space in California. A portion of the space under one of these leases is subleased to a third party. All of these leases include one or more options to renew, with those renewal periods ranging from five to fourteen years.

The table below presents supplemental balance sheet information related to operating leases:


	December 31,
	2020		2019
Weighted-average remaining lease term (in years)	5.9		5.6
Weighted-average discount rate	9.7	%	9.9	%

Upon adoption of ASC 842 on January 1, 2019, it was not reasonably certain that the Company would extend any of its operating leases, therefore the options to extend the lease terms were not recognized as part of the ROU assets or lease liabilities. During the year ended December 31, 2019, the Company exercised the options to extend two leases for an additional five years each, therefore the Company remeasured the lease liability and adjusted the carrying amount of the ROU asset related to these leases. During the years ended December 31, 2020 and 2019, the Company made cash payments for operating leases of $5.9 million and $6.4 million, respectively. As of December 31, 2020 and 2019, the Company’s ROU assets were valued at $19.3 million and $20.2 million, respectively, and are included in Other assets on the consolidated balance sheet.

The components of lease cost for the years ended December 31, 2020 and 2019 were as follows (in thousands):


	December 31,
	2020		2019
Operating lease cost	$	5,410	$	5,463
Variable lease cost	1,083		1,366
Sublease income	(770)		(942)
Net lease cost	$	5,723	$	5,887

As of December 31, 2020, the maturities of the Company’s operating lease liabilities were as follows (in thousands):


2021	$	6,726
2022	6,940
2023	6,796
2024	5,856
2025	5,084
Thereafter	7,764
Total lease payments	39,166
Present value adjustment	(9,918)
Lease liabilities	$	29,248