Leases

3 Months Ended

Mar. 31, 2020

LeasesWe 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 to March 31, 2022 and to add more 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 the remaining payments due under our amended lease.

As our operating lease does not include an expressly stated 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 each of the three months ended March 31, 2020 and 2019 was approximately $0.4 million.

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:


	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019

	(in thousands)
Cash paid for operating lease liability	$	391		$	379
Right-of-use assets obtained in exchange for new operating lease liability	$	—		$	1,878
Weighted-average remaining lease term	24 months			12 months
Weighted-average discount rate	5.0		%	5.0		%

As of March 31, 2020, future minimum lease payments under non-cancelable operating leases were as follows (in thousands):


2020 (remainder)	$	1,598
2021	2,130
2022	535
	4,263
Less imputed interest	(1,151)
Total lease liabilities	$	3,112

These payments exclude impact of any leases and modifications executed after March 31, 2020