Leases |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases |
8. Leases The Company adopted ASU 2016-02 on January 1, 2019. Upon adoption, leases classified as operating leases under previous U.S. GAAP are recognized as right of use lease assets and lease liabilities. The classification criteria for distinguishing between finance leases and operating leases pursuant to ASU 2016-02 are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. Upon adoption, the Company did not have any finance leases, and the Company’s operating leases were as follows: Office Space Lease The Company leases 7,193 square feet of office space in Rockville Maryland, with a lease term ending June 30, 2019. Under the lease agreement, the Company pays its allocable portion of real estate taxes and common area operating charges. On March 18, 2019 the Company amended its office space to extend the lease for 5,466 square feet for a lease term commencing July 1, 2019 and ending June 30, 2024. The amended lease has escalating rent payments for which the Company records rent expense on a straight line basis over the lease term, and an option to terminate the leased premises, without penalty, on June 30, 2021. The Company is reasonably certain that it will not remain in these leased premises after the optional termination date, and therefore, is using the optional termination date in assessing the lease term. Laboratory Lease The Company was leasing 2,552 square feet of laboratory space with a lease term due to end on June 30, 2020. The Company terminated its laboratory lease agreement on February 4, 2019 and surrendered the premises on February 28, 2019. The following table summarizes the right of use lease assets and lease liabilities as of March 31, 2019:
Lease expense for the three months ended March 31, 2019 was $96,291, which includes $80,279 in operating lease costs and $16,012 in variable lease costs. The right-of-use asset and lease liability were calculated using an estimated incremental borrowing rate of 11%. At March 31, 2019, the weighted average lease term was 1.8 years.
The table below summarizes the Company’s scheduled future minimum lease payments recorded on the balance sheet, as of March 31, 2019:
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