5.     Leases

The Company has one operating lease for a commercial manufacturing facility and administrative offices located in Langhorne, Pennsylvania that runs through January 2026.

The right-of-use asset and lease liability from this operating lease were recognized in the opening balance sheet as of January 1, 2019 and are based on the present value of remaining lease payments over the lease term using the Company’s incremental borrowing rate.

The following table presents information about the amount and timing of the liability arising from the Company’s operating lease as of September 30, 2020 ($ in thousands):

Total operating lease expense for the nine months ended September 30, 2020 and 2019 was $156 thousand and is recorded in cost of goods sold and selling, general and administrative expenses on the condensed statement of operations.