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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Supplemental Cash Flow Information Related to Operating and Financing Lease

The following table presents supplemental cash flow information related to operating and financing leases for the three months ended March 31, 2021 and 2020 (in thousands):

		Three Months Ended March 31,
		2021				2020
Cash paid for amounts included in the measurement of financing lease liabilities:
Operating cash flows from operating leases		$	220			$	78
Operating cash flows from financing leases			10				3
Financing cash flows from financing leases			41				17
Right-of-use assets obtained in exchange for lease obligation:
Operating lease, including lease acquired in Insight Genetics business combination			-				536

Schedule of Supplemental Balance Sheet Information Related to Operating and Financing Leases

The following table presents supplemental balance sheet information related to operating and financing leases as of March 31, 2021 (in thousands, except lease term and discount rate):

		March 31, 2021
Operating leases
Right-of-use assets, net		$	2,801

Right-of-use lease liabilities, current		$	606
Right-of-use lease liabilities, noncurrent			3,664
Total operating lease liabilities		$	4,270

Financing leases
Machinery and equipment		$	537
Accumulated depreciation			(226)
Machinery and equipment, net		$	311
Current liabilities		$	135
Noncurrent liabilities			196
Total financing lease liabilities		$	331

Weighted average remaining lease term
Operating leases			6 years
Financing leases			2.5 years

Weighted average discount rate
Operating leases			11.16%
Financing leases			11.34%

Schedule of Future Minimum Lease Commitments for Operating and Financing Leases

Future minimum lease commitments are as follows (in thousands):

		Operating Leases				Financing Leases
Year Ending December 31,
2021		$	811			$	134
2022			1,096				124
2023			1,000				124
2024			889				-
2025			869				-
Thereafter			1,594				-
Total minimum lease payments		$	6,259			$	382
Less amounts representing interest			(1,760)				(51)
Less: Tenant Improvement Allowance, net of administrative fee ⁽¹⁾			(229)				-
Present value of net minimum lease payments		$	4,270			$	331

(1)

In accordance with ASC 842, a tenant allowance should be included in the measurement of the consideration in the lease agreement at inception and reflected as a reduction to the right-of-use asset and a corresponding reduction to the right-use-liability if the lessee both controls the construction of the tenant improvements and the expects to fully earn all of the tenant allowance. Oncocyte has met both conditions at the inception of the Irvine Lease and has recorded the Tenant Improvement Allowance accordingly. As the cash for the Tenant Improvement Allowance is received from the lessor under the terms of the Irvine Lease, the corresponding right-of-use liability will increase and will be amortized as part of the right-of use asset and liability amortization over the term of the Irvine Lease in accordance with ASC 842. As of March 31, 2021, the lessor had provided $1.1 million of the total $1.3 million Tenant Improvement Allowance, leaving a balance of $0.2 million.