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Leases | 6 Months Ended
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Jun. 30, 2019
Leases |
Leases | Note 8 - Leases On October 27, 2017, Mustang entered into a lease agreement with WCS - 377 Plantation Street, Inc., a Massachusetts nonprofit corporation. Pursuant to the terms of the lease agreement, Mustang agreed to lease 27,043 sf from the landlord, located at 377 Plantation Street in Worcester, MA (the “Facility”), through November 2026, subject to additional extensions at Mustang’s option. Base rent, net of abatements of $0.6 million over the lease term, totals approximately $3.6 million, on a triple-net basis. The terms of the lease also require that Mustang post an initial security deposit of $0.8 million, in the form of $0.5 million letter of credit and $0.3 million in cash, which shall increase to $1.3 million ($1.0 million letter of credit, $0.3 million in cash) when the Facility is fully occupied by Mustang. After the fifth lease year, the letter of credit obligation is subject to reduction. The Facility began operations for the production of personalized CAR T and gene therapies in 2018. The Company leases office space and copiers under agreements classified as operating leases that expire on various dates through 2026. Most of the Company’s lease liabilities result from the lease of its Facility in Massachusetts, which expires in 2026, and its copiers, which expires in 2021. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. Certain of the Company’s leases include renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liabilities and right of use assets as the Company is not reasonably certain to exercise the options. The Company does not act as a lessor or have any leases classified as financing leases. At June 30, 2019, the Company had operating lease liabilities of $2.0 million and right of use assets of $1.2 million, which were included in the condensed balance sheet. The following summarizes quantitative information about the Company’s operating leases:
|  | For the Six
|  | Months Ended
($ in thousands) |  | June 30, 2019
Lease cost |  |  |
Operating lease cost |  | $ | 157
Variable lease cost |  |  | 363
Total |  | $ | 520
|  | For the Six |
|  | Months Ended |
($ in thousands) |  | June 30, 2019 |
Operating cash flows from operating leases |  | $ | 120 |
Right of use assets exchanged for operating lease liabilities |  | $ | 2,047 |
Weighted-average remaining lease term – operating leases |  |  | 5.0 |
Weighted-average discount rate – operating leases |  |  | 8.96 | %
Maturities of our operating leases, excluding short-term leases, are as follows:
($ in thousands) |  |  |
Six months ended December 31, 2019 |  | $ | (338)
Year ended December 31, 2020 |  |  | 461
Year ended December 31, 2021 |  |  | 467
Year ended December 31, 2022 |  |  | 476
Year ended December 31, 2023 |  |  | 489
Thereafter |  |  | 1,458
Total |  |  | 3,013
Less present value discount |  |  | (994)
Operating lease liabilities |  | $ | 2,019
At December 31, 2018, the total future minimum lease payments under all leases were:
($ in thousands) |  |  |
2019 |  | $ | 276
2020 |  |  | 460
2021 |  |  | 467
2022 |  |  | 476
2023 |  |  | 489
Beyond |  |  | 1,458
Total minimum lease payments |  | $ | 3,626

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + 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 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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