Quarterly report pursuant to Section 13 or 15(d)

Lease Obligations

v3.5.0.2
Lease Obligations
6 Months Ended
Jun. 30, 2016
Leases [Abstract]  
Lease Obligations
Lease Obligations

The Company leases office and laboratory facilities in California, Kansas and New Jersey. These leases expire between 2016 and 2023, some of which are subject to annual rent increases which range from 3.0% to 3.5%. The Company currently subleases office and laboratory space in California and New Jersey. The following table provides a summary of operating lease obligations and payments expected to be received from sublease agreements as of June 30, 2016 (in thousands):

Operating lease obligations:
 
Lease
Termination
Date
 
Less than 1
year
1-2 years
3-4 years
Thereafter
Total
Corporate headquarters-San Diego, CA
 
April 2023
 
$
74

$
263

$
278

$
270

$
885

Vacated office and research facility-
La Jolla, CA
 
June 2019
 
708

1,474



2,182

Bioscience and Technology Business Center-
Lawrence, KS
 
December 2017
 
54

27



81

Vacated office and research facility-
Cranbury, NJ
 
August 2016
 
436




436

Total operating lease obligations
 
 
 
$
1,272

$
1,764

$
278

$
270

$
3,584

 
 
 
 
 
 
 
 
 
Sublease payments expected to be received:
 
 
 
 
 
 
 
 
Vacated office and research facility-
La Jolla, CA
 
June 2019
 
$
720

$
1,400

$

$

$
2,120

Office and research facility-
Cranbury, NJ
 
August 2016
 
35




35

Net operating lease obligations
 
 
 
$
517

$
364

$
278

$
270

$
1,429




As of June 30, 2016 and December 31, 2015, the Company had lease exit obligations of $0.2 million and $0.9 million, respectively. For the three and six months ended June 30, 2016, the Company made cash payments, net of sublease payments received of $0.6 million and $1.2 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.3 million and $0.5 million for the three and six months ended June 30, 2016, respectively. For the three and six months ended June 30, 2015, the Company made cash payments, net of sublease payments received of $0.9 million and $1.9 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.2 million and $0.4 million for the three and six months ended June 30, 2015, respectively.