Leases

12 Months Ended

Dec. 31, 2019

We lease our office facilities in Menlo Park, California. On January 1, 2019, we recognized a right-of-use asset and a corresponding lease liability of $1.9 million. Effective October 1, 2019, we amended the lease to extend its term from March 31, 2020 through March 31, 2022 and to additional space beginning April 1, 2020. As a result of this amendment, we recognized an additional right-of-use asset and corresponding lease liability of $3.0 million. The right-of-use asset and lease liability recognized equals the present value of remaining payments due under our amended lease.

As our operating lease does not provide an implicit interest rate, we calculated the present value of remaining lease payments using a discount rate equal to the interest rate we would pay on a loan with monthly payments and a term equal to the monthly payments and remaining term of our lease. We recognize operating lease payments as expenses using the straight-line method over the term of the lease.

Operating lease expense for the year ended December 31, 2019 was approximately $1.5 million. Rent expense for the years ended December 31, 2018 and 2017 was $1.3 million and $1.1 million, respectively.

For any future operating lease transactions, we will recognize operating lease right-of-use assets and liabilities equal to the present value of the expected lease payments at the lease commencement date.

Our right-of-use assets and related lease liabilities were as follows:



	Year Ended December 31, 2019
	(in thousands)
Cash paid for operating lease liabilities	$	1,551
Right-of-use assets obtained in connection with operating lease obligations	$	4,913
Remaining lease term (years)	27 months
Discount rate	5.0		%

As of December 31, 2019, future minimum lease payments under non-cancelable operating leases were as follows:



2020	$	1,997
2021	2,130
2022	535
	4,662
Less imputed interest	(1,201		)
Total lease liability	$	3,461