Note 6 - Leases

9 Months Ended

Sep. 30, 2020

6. Leases

The Company leases office and laboratory space for its corporate headquarters, located at 301 – 351 Galveston Drive, Redwood City, California, and has entered into an agreement to sublease approximately 47% of this office and laboratory space. In addition, the Company has entered into an agreement for commercial supply manufacturing services related to the Company’s Zalviso drug product with a contract manufacturing organization, which it accounts for as an operating lease.

The components of lease expense are presented in the following table (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Operating lease costs	$	305		$	340		$	914		$	1,020
Sublease income		(150	)		(150	)		(449	)		(446	)
Net lease costs	$	155		$	190		$	465		$	574

The weighted average remaining lease term and discount rate related to the operating leases are presented in the following table:

	September 30, 2020
Weighted-average remaining term – operating lease (in years)	3.31
Weighted-average discount rate – operating lease	11.72	%

Future minimum lease payments as of September 30, 2020 are presented in the following table (in thousands):

Year:
2020 (remaining three months)	$	318
2021		1,364
2022		1,345
2023		1,386
2024		116
Total future minimum lease payments		4,529
Less imputed interest		(592	)
Total	$	3,937

Reported as:

Operating lease liabilities	$	1,131
Operating lease liabilities, net of current portion		2,806
Total lease liability	$	3,937

Future minimum sublease payments as of September 30, 2020 are presented in the following table (in thousands):

Year:
2020 (remaining three months)	$	148
2021		610
2022		629
2023		648
2024		54
Total future minimum sublease payments	$	2,089

The rent receivable balance reported in the balance sheet as of September 30, 2020, is as follows (in thousands):

Reported as:

Prepaid expenses and other current assets	$	91
Other assets		283
Total rent receivable	$	374