Quarterly report pursuant to Section 13 or 15(d)

Lease Obligations

v2.4.1.9
Lease Obligations
3 Months Ended
Mar. 31, 2015
Leases [Abstract]  
Lease Obligations
Lease Obligations

The Company leases office and laboratory facilities in California, Kansas and New Jersey. These leases expire between 2015 and 2019, 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 March 31, 2015 (in thousands):

Operating lease obligations:
 
Lease
Termination
Date
 
Less than 1
year
1 year
2 years
3 years
4 years
Total
Corporate headquarters-
San Diego, CA
 
June 2019
 
$
686

$
704

$
723

$
742

$
187

$
3,042

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

54

41



149

Vacated office and research facility-San Diego, CA
 
July 2015
 
765





765

Vacated office and research facility-
Cranbury, NJ
 
August 2016
 
2,602

1,089




3,691

Total operating lease obligations
 
 
 
$
4,107

$
1,847

$
764

$
742

$
187

$
7,647

 
 
 
 
 
 
 
 
 
 
Sublease payments expected to be received:
 
 
 
 
 
 
 
 
 
Corporate headquarters-
San Diego, CA
 
June 2019
 
$
433

$
444

$
455

$
465

$
116

$
1,913

Office and research facility-
San Diego, CA
 
July 2015
 
311





311

Office and research facility-
Cranbury, NJ
 
August 2016
 
212

88




300

Net operating lease obligations
 
 
 
$
3,151

$
1,315

$
309

$
277

$
71

$
5,123




As of March 31, 2015 and December 31, 2014, the Company had lease exit obligations of $2.6 million and $3.3 million, respectively. For each of the three months ended March 31, 2015 and 2014, the Company made cash payments, net of sublease payments received of $0.9 million. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.2 million for each of the three months ended March 31, 2015 and 2014.
Total rent expense under all office leases for each of the three months ended March 31, 2015 and 2014 was $0.2 million. The Company recognizes rent expense on a straight-line basis. Deferred rent at both March 31, 2015 and December 31, 2014 was $0.3 million, and is included in other long-term liabilities.