The accompanying notes are an integral part of these unaudited condensed financial statements.
The accompanying notes are an integral part of these unaudited condensed financial statements.
The accompanying notes are an integral part of these unaudited condensed financial statements.
Notes to Unaudited
Condensed Financial Statements
1. Description of Business and Basis of Presentation
Description of Business
scPharmaceuticals LLC was formed as a Limited Liability Company under the laws of the State of Delaware on February 19, 2013. On March 24, 2014, scPharmaceuticals LLC was converted to a Delaware corporation and changed its name to scPharmaceuticals Inc. (“the Company”). The Company is a pharmaceutical company focused on developing and commercializing products that have the potential to transform the way therapy is delivered, advance patient care and reduce healthcare costs. The Company’s proprietary platform is designed to enable the subcutaneous administration of therapies that have previously been limited to intravenous, or IV, delivery. The Company’s headquarters and primary place of business is Burlington, Massachusetts.
In June 2018, the Company
received a complete response letter (“CRL”) from the U.S. Food and Drug Administration (“FDA”) regarding its New Drug Application (“NDA”). On June 15, 2018 management implemented a restructuring plan to reduce operating costs and better align its workforce with the needs of its business following receipt of the CRL. As of September 30, 2018, the Company had paid out all severance, benefits, and related costs.
Basis of Presentation
The accompanying condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and have been prepared on a basis which assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Certain information and disclosures normally included in financial statements in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these condensed financial statements should be read in conjunction with the Company’s audited financial statements and related notes for the year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 20, 2018. The Company has determined that it operates in one segment.
The accompanying condensed balance sheet as of September 30, 2018, the condensed statements of operations and comprehensive loss for the three and nine months ended September 30, 2017 and 2018 and condensed statements of cash flows for the nine months ended September 30, 2017 and 2018 are unaudited. The unaudited condensed financial statements have been prepared on a basis consistent with that used to prepare the Company’s audited annual financial statements and include, in the opinion of management, adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed financial statements. The operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results expected for the full year ending December 31, 2018.
2. Significant Accounting Policies
Stock Split
On November 6, 2017, the Company effectuated a 1-for-7.180193 reverse stock split of its outstanding common stock, which was approved by the Company’s board of directors on October 27, 2017 and by the Company’s stockholders on November 6, 2017. The reverse stock split resulted in an adjustment to the preferred stock conversion prices to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying financial statements and notes to the financial statements give retroactive effect to the reverse stock split for all periods presented. The shares of common stock retained a par value of $0.0001 per share. Accordingly, the stockholders’ equity reflects the reverse stock split by reclassifying from common stock to additional paid-in capital an amount equal to the par value of the decreased shares resulting from the reverse stock split.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reported periods. Actual results could differ from those estimates.
4
Cash, Cash Equivalents and R
estricted Cash
Cash, cash equivalents and restricted cash consists of bank deposits, certificates of deposit and money market accounts with financial institutions. Cash equivalents are carried at cost which approximates fair value due to their short-term nature and which the Company believes do not have a material exposure to credit risk. The Company considers all highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. The Company’s cash and cash equivalent accounts, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts.
As of September 30, 2018, the Company classified $182,000 as restricted cash related to a letter of credit issued as a security deposit in connection with the Company’s lease of its corporate office facilities (Note 8). Cash, cash equivalents and restricted cash consists of the following:
|
December 31,
2017
|
|
|
September 30,
2018
|
|
Cash and cash equivalents
|
$
|
118,298
|
|
|
$
|
95,299
|
|
Restricted cash
|
|
182
|
|
|
|
182
|
|
Cash, cash equivalents and restricted cash
|
$
|
118,480
|
|
|
$
|
95,481
|
|
Fair Value of Financial Instruments
Assets and liabilities that are carried at fair value are to be classified and disclosed in one of the following three categories:
Level 1: Observable quoted market prices in active markets for identical assets or liabilities;
Level 2: Observable inputs other than Level 1, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability; and
Level 3: Unobservable inputs for the asset or liability that are significant to the fair value of the assets or liabilities.
The Company does not have any recurring fair value measurements as of September 30, 2018. The carrying values of the Company’s cash, cash equivalents and restricted cash, prepaid expenses, VAT receivable, and deposits approximate their fair values due to their short term nature. The carrying value of the Company’s loan payable was considered a reasonable estimate of fair value because the Company’s interest rate approximates current market rates for instruments with similar characteristics.
Leases
The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) lease assets, current portion of lease obligations, and long term lease obligations on the Company’s balance sheets.
ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Income Taxes
The Company accounts for income taxes in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 740,
Income Taxes.
Deferred tax assets and liabilities are recorded to reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured under enacted tax laws. A valuation allowance is required to offset any net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized.
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions. The tax benefits recorded are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is “more likely than not” to be realized following resolution of any uncertainty related to the tax benefit, assuming that the matter in question will be raised by the tax authorities. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. At September 30, 2018, the Company had no such accruals.
5
Recen
tly Issued Accounting Standards
In May 2014, the FASB and the International Accounting Standards Board jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”), which supersedes the revenue recognition requirements in ASC 605 and most industry-specific guidance. The new standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The update also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASC 606 is effective for public entities for annual and interim periods within those annual periods beginning after December 15, 2017. The Company has adopted ASC 606 as of January 1, 2018. The future impact of ASC 606 will be dependent on the nature of the Company’s future revenue contracts and arrangements, if any.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 is intended to improve financial reporting of leasing transactions by requiring organizations that lease assets to recognize assets and liabilities for the rights and obligations created by leases that extend more than twelve months on the balance sheet. This accounting update also requires additional disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for financial statements issued for annual and interim periods beginning after December 15, 2018 for public business entities. Early adoption is permitted. The Company elected to early adopt ASU 2016-02 as of January 1, 2018 with retrospective application to January 1, 2016, the beginning of the earliest period to be presented in the Annual Report on Form 10-K for the year ended December 31, 2018. The Company has elected the package of practical expedients permitted in ASC Topic 842. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs before transition adjustments (as of December 31, 2015) would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. In addition, the Company does allocate the consideration between lease and non-lease components. As a result of the adoption of the new lease accounting guidance, the Company recognized on January 1, 2016 (a) a lease liability of approximately $409,000, which represents the present value of the remaining lease payments of approximately $540,000, discounted using the Company’s incremental borrowing rate of 9.63%, and (b) a right-of-use asset of approximately $396,000 which represents the lease liability of $409,000 adjusted for accrued rent of approximately $13,000. Adoption of the standard requires the Company to restate certain previously reported results, including the recognition of additional ROU assets and lease obligations for operating leases. This standard did not have a material impact on the Company’s balance sheets or cash flows from operations and had no impact on the Company’s operating results. The most significant impact was the recognition of ROU assets and lease obligations for operating leases.
In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”). ASU 2018-10 is intended to address questions on the application of ASU No. 2016-02 and to clarify its guidance. ASU 2018-10 is effective for financial statements issued for annual and interim periods beginning after December 15, 2018 for public business entities. For entities who have early adopted ASU No. 2016-02, the guidance is effective upon the issuance of ASU 2018-10. The Company adopted ASU 2018-10 in July 2018 and there was no impact to the Company’s financial statements.
In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) (“ASU 2018-13”). ASU 2018-13 modifies fair value disclosure requirements, specifically around level transfers and valuation of Level 3 assets and liabilities. ASU 2018-13 is effective for financial statements issued for annual and interim periods beginning after December 15, 2019 for all entities. Early adoption of all or part of ASU No. 2018-13 is permitted. The Company does not expect ASU 2018-13 to have a material impact on its financial statements.
3. Net Loss per Share
Net Loss per Share Attributable to Common Stockholders
The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except share and per share data):
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
Net loss and comprehensive loss
|
|
$
|
(5,489
|
)
|
|
$
|
(5,761
|
)
|
|
$
|
(16,937
|
)
|
|
$
|
(24,343
|
)
|
Weighted-average shares used in computing net loss per share
|
|
|
1,080,351
|
|
|
|
18,569,289
|
|
|
|
1,074,702
|
|
|
|
18,551,690
|
|
Net loss per share, basic and diluted
|
|
$
|
(5.08
|
)
|
|
$
|
(0.31
|
)
|
|
$
|
(15.76
|
)
|
|
$
|
(1.31
|
)
|
6
The Company’s potentially dilutive securities, which include stock options and convertible preferred stock, have been excluded from the computation of diluted net loss per share as the effect
would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following p
otential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effec
t.
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
Convertible preferred stock, on an as-converted basis
|
|
|
10,126,771
|
|
|
|
-
|
|
|
|
10,126,771
|
|
|
|
-
|
|
Stock options to purchase common stock
|
|
|
1,046,879
|
|
|
|
1,746,287
|
|
|
|
1,046,879
|
|
|
|
1,746,287
|
|
Unvested restricted stock
|
|
|
852
|
|
|
|
-
|
|
|
|
852
|
|
|
|
-
|
|
Total
|
|
|
11,174,502
|
|
|
|
1,746,287
|
|
|
|
11,174,502
|
|
|
|
1,746,287
|
|
4. Property and Equipment
Purchased property and equipment consist of the following (dollars in thousands):
|
|
ESTIMATED
USEFUL LIFE
|
|
December 31,
2017
|
|
|
September 30,
2018
|
|
Office equipment
|
|
5 years
|
|
$
|
10
|
|
|
$
|
10
|
|
Office furniture
|
|
7 years
|
|
|
116
|
|
|
|
116
|
|
Machinery & equipment
|
|
5 years
|
|
|
-
|
|
|
|
41
|
|
Computer equipment
|
|
3 years
|
|
|
8
|
|
|
|
8
|
|
Leasehold improvements
|
|
Life of lease
|
|
|
95
|
|
|
|
95
|
|
|
|
|
|
|
229
|
|
|
|
270
|
|
Less: Accumulated depreciation
|
|
|
|
|
(26
|
)
|
|
|
(55
|
)
|
Property and equipment, net
|
|
|
|
$
|
203
|
|
|
$
|
215
|
|
Depreciation expense for the three months ended September 30, 2017 and September 30, 2018 was $5,000 and $10,000, respectively.
Depreciation expense for the nine months ended September 30, 2017 and September 30, 2018 was $8,000 and $29,000, respectively.
Leased property and equipment consist of the following (dollars in thousands):
|
|
ESTIMATED
USEFUL LIFE
|
|
December 31,
2017
|
|
|
September 30,
2018
|
|
Right-of-use lease assets - operating (Type B)
|
|
Lease term
|
|
$
|
2,014
|
|
|
$
|
2,024
|
|
Less: Accumulated amortization
|
|
|
|
|
(241
|
)
|
|
|
(442
|
)
|
Right-of-use lease assets - operating (Type B), net
|
|
|
|
$
|
1,773
|
|
|
$
|
1,582
|
|
Amortization expense for the three months ended September 30, 2017 and September 30, 2018 was $30,000 and $74,000, respectively.
Amortization expense for the nine months ended September 30, 2017 and September 30, 2018 was $79,000 and $218,000, respectively.
7
5. Accrued Expenses
Accrued expenses consist of (in thousands):
|
|
December 31,
2017
|
|
|
September 30,
2018
|
|
Contract research and development
|
|
$
|
1,610
|
|
|
$
|
985
|
|
Consulting and professional service fees
|
|
|
287
|
|
|
|
251
|
|
Employee compensation and related costs
|
|
|
871
|
|
|
|
795
|
|
State taxes
|
|
|
192
|
|
|
|
123
|
|
Financing related costs
|
|
|
90
|
|
|
|
-
|
|
Other
|
|
|
13
|
|
|
|
58
|
|
Total accrued expenses
|
|
$
|
3,063
|
|
|
$
|
2,212
|
|
6. Stock-Based Compensation
Stock Options
The Company’s 2017 Stock Option and Incentive Plan (the “2017 Stock Plan”) became effective in November 2017, upon the closing of the Company’s initial public offering and will expire in October 2027. Under the 2017 Stock Plan, the Company may grant incentive stock options, non-statutory stock options, restricted stock awards and other stock-based awards. The Company’s 2014 Stock Incentive Plan (the “2014 Stock Plan”) was terminated in November 2017 effective upon the completion of the Company’s initial public offering. No further additional options will be granted under the 2014 Stock Plan. At September 30, 2018, there were 1,022,219 options outstanding under the 2014 Plan.
As of September 30, 2018, there were 2,252,980 shares of the Company’s common stock authorized for issuance under the 2017 Stock Plan.
At September 30, 2018, there were 1,528,912 options available for issuance and 724,068 options outstanding under the 2017 Stock Plan. Options granted under the 2017 Plan have a term of ten years. Vesting of options under the 2017 Stock Plan is determined by the board of directors, but is generally over one to four-year terms.
The fair value of options at date of grant was estimated using the Black-Scholes option-pricing model with the following assumptions:
|
|
Nine Months Ended
September 30,
|
|
|
|
2017
|
|
|
2018
|
|
Risk-free interest rate
|
|
1.89%-2.20%
|
|
|
2.42%-2.86%
|
|
Expected dividend yield
|
|
0%
|
|
|
0%
|
|
Expected life
|
|
5.8-6.7 years
|
|
|
5.5-7.0 years
|
|
Expected volatility
|
|
78%-84%
|
|
|
76%-86%
|
|
Weighted-average grant date fair value
|
|
$
|
2.67
|
|
|
$
|
7.57
|
|
The following table summarizes information about stock option activity during the nine months ended September 30, 2018 (in thousands, except share and per share data):
|
|
NUMBER OF
SHARES
|
|
|
WEIGHTED-
AVERAGE
EXERCISE
PRICE
|
|
|
WEIGHTED-
AVERAGE
REMAINING
CONTRACTUAL
TERM
|
|
AGGREGATE
INTRINSIC
VALUE
|
|
Outstanding, December 31, 2017
|
|
|
1,195,495
|
|
|
$
|
5.38
|
|
|
|
|
|
|
|
Granted
|
|
|
939,296
|
|
|
|
10.54
|
|
|
|
|
|
|
|
Exercised
|
|
|
(34,561
|
)
|
|
|
1.69
|
|
|
|
|
|
|
|
Forfeited
|
|
|
(353,943
|
)
|
|
|
11.59
|
|
|
|
|
|
|
|
Outstanding,
|
|
|
1,746,287
|
|
|
$
|
6.97
|
|
|
8.69
|
|
$
|
1,808
|
|
Vested and exercisable, September 30, 2018
|
|
|
519,580
|
|
|
$
|
5.30
|
|
|
7.93
|
|
$
|
748
|
|
Vested and expected to vest, September 30, 2018
|
|
|
1,482,527
|
|
|
$
|
6.93
|
|
|
8.62
|
|
$
|
1,565
|
|
Unrecognized compensation expense related to unvested awards as of September 30, 2018 was $4.5 million and will be recognized over the remaining vesting periods of the underlying awards. The weighted-average period over which such compensation is expected to be recognized is 2.8 years.
8
During
the nine months ended September 30, 2018, as part of the restructuring plan (Note 1), the Company extended the exercise period to one year for 21,820 vested options of those affected, with a weighted average exercise price of $7.95,
and recorded incremental stock-based compensation expense of $33,000.
The Company recorded stock-based compensation expense in the following expense categories of its accompanying condensed statements of operations and comprehensive loss for the three and nine months ended September 30, 2017 and 2018 (in thousands):
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
Research and development
|
|
$
|
35
|
|
|
$
|
154
|
|
|
$
|
109
|
|
|
$
|
394
|
|
General and administrative
|
|
|
199
|
|
|
|
409
|
|
|
|
461
|
|
|
|
1,288
|
|
Total
|
|
$
|
234
|
|
|
$
|
563
|
|
|
$
|
570
|
|
|
$
|
1,682
|
|
7. Term Loan
In May 2017, the Company entered into a loan and security agreement (the “2017 Loan Agreement”), with Solar Capital Ltd. and Silicon Valley Bank for $10.0 million. The 2017 Loan Agreement has a maturity date of May 1, 2021. Debt issuance costs for the 2017 Loan Agreement will be amortized to interest expense over the remaining term of the 2017 Loan Agreement using the effective-interest method.
The interest rate under the 2017 Loan Agreement is LIBOR plus 8.45%, and there is an interest-only period until November 30, 2018, followed by a 30-month principal and interest period. Pursuant to the 2017 Loan Agreement, the Company provided a first priority security interest in all existing and after-acquired assets, excluding intellectual property, owned by the Company.
The Company entered into an exit fee agreement in connection with the 2017 Loan Agreement for an aggregate payment of 4% of the loan commitment, or $400,000, to the lenders upon the occurrence of an exit event, including an initial public offering. The Company concluded that the exit payment obligation met the definition of a derivative that was required to be accounted for as a separate unit of accounting. The Company recorded the issuance-date fair value of the derivative liability of $392,000 as a debt discount and as a derivative liability in the Company’s balance sheet. The Company paid the fee in November 2017 in conjunction with the Company’s IPO.
As of September 30, 2018, unpaid borrowings under the 2017 Loan Agreement totaled $10.0 million. For the three and nine months ended September 30, 2018 the Company recorded $68,000 and $212,000, respectively, related to the amortization of debt discount associated with the 2017 Loan Agreement. For the three and nine months ended September 30, 2017 the Company recorded $59,000 and $79,000, respectively, related to the amortization of debt discount associated with the 2017 Loan Agreement.
The 2017 Loan Agreement allows the Company to voluntarily prepay all (but not less than all) of the outstanding principal at any time. A prepayment premium of initially 3% reducing to 1% following the one year anniversary would be assessed on the outstanding principal. A final payment fee of $250,000 is due upon the earlier to occur of the maturity date or prepayment of such borrowings. For the three and nine months ended September 30, 2018, the Company recorded $22,000 and $66,000, respectively, related to the amortization of the final payment fee associated with the 2017 Loan Agreement. For the three and nine months ended September 30, 2017, the Company recorded $23,000 and $32,000, respectively, related to the amortization of the final payment fee associated with the 2017 Loan Agreement.
In an event of default under the 2017 Loan Agreement, the interest rate will be increased by 5% and the balance under the loan may become immediately due and payable at the option of the lenders.
The 2017 Loan Agreement includes restrictions on, among other things, the Company’s ability to incur additional indebtedness, change the name or location of the Company’s business, merge with or acquire other entities, pay dividends or make other distributions to holders of its capital stock, make certain investments, engage in transactions with affiliates, create liens, sell assets or pay subordinated debt.
9
Total term loan and unamortized debt discount balances are as foll
ows (in thousands):
|
|
September 30,
2018
|
|
Face value
|
|
$
|
10,000
|
|
Less: discount
|
|
|
(369
|
)
|
Total
|
|
$
|
9,631
|
|
Less: current portion
|
|
|
(3,210
|
)
|
Total
|
|
$
|
6,421
|
|
As of September 30, 2018, future principal payments due under the 2017 Loan Agreement are as follows (in thousands):
Year ended:
|
|
|
|
|
December 31, 2018
|
|
$
|
333
|
|
December 31, 2019
|
|
|
4,000
|
|
December 31, 2020
|
|
|
4,000
|
|
December 31, 2021
|
|
|
1,667
|
|
Total
|
|
$
|
10,000
|
|
8. Commitments and Contingencies
Operating Leases
The Company leases office facilities and equipment under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2022 and do not include renewal options.
Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally also include real estate taxes and common area maintenance (“CAM”) charges in the annual rental payments.
Pursuant to the terms of its lease agreement for the Company’s headquarters, the Company obtained a letter of credit in the amount of approximately $182,000 as security on the lease obligation. The letter of credit is listed as restricted cash on the Company’s balance sheets.
Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases.
The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of September 30, 2018 (in thousands):
Year ended:
|
|
|
|
|
December 31, 2018
|
|
$
|
128
|
|
December 31, 2019
|
|
|
513
|
|
December 31, 2020
|
|
|
528
|
|
December 31, 2021
|
|
|
537
|
|
December 31, 2022
|
|
|
496
|
|
Total minimum lease payments
|
|
$
|
2,202
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2017
|
|
|
2018
|
|
Lease cost:
|
|
|
|
|
|
|
|
|
Operating lease cost
|
|
$
|
167
|
|
|
$
|
348
|
|
Short-term lease cost
|
|
|
2
|
|
|
|
6
|
|
Sublease income
|
|
|
-
|
|
|
|
(26
|
)
|
Total lease cost
|
|
$
|
169
|
|
|
$
|
328
|
|
Other information
|
|
|
|
|
|
|
|
|
Cash paid for amounts included in the measurement of lease liabilities
|
|
$
|
68
|
|
|
$
|
302
|
|
Operating cash flows from operating leases
|
|
$
|
46
|
|
|
$
|
55
|
|
Weighted-average remaining lease term - operating leases
|
|
5.2 years
|
|
|
4.2 years
|
|
Weighted-average discount rate - operating leases
|
|
|
10.1
|
%
|
|
|
10.1
|
%
|
10
In February 2018, the Company signed a sublease agreement for its f
acility located in Lexington, Massachusetts.
The
lease commenced on
April 1, 2018
and has
an initial term of three years
with
an extension term through December 2022.
11