Leases

12 Months Ended

Dec. 31, 2019

The Company has non-cancelable operating leases for manufacturing, laboratory and office space in Rockville, Maryland and a non-cancelable operating lease for laboratory and office space in Brisbane, California. A portion of the space under one of these leases is subleased to a third party. All but one of these leases include one or more options to renew, with those renewal periods ranging from five to fourteen years. At December 31, 2019, the Company's weighted-average remaining lease term relating to its operating leases is 5.6 years, with a weighted-average discount rate of 9.9%.

Upon adoption of ASC 842 on January 1, 2019, it was not reasonably certain that the Company would extend any of its operating leases, therefore the options to extend the lease terms were not recognized as part of the ROU assets or lease liabilities. During the year ended December 31, 2019, the Company exercised the options to extend two leases for an additional five years each, therefore the Company remeasured the lease liability and adjusted the carrying amount of the ROU asset related to these leases. The Company made cash payments of $6.4 million for operating leases during the year ended December 31, 2019. As of December 31, 2019, the Company’s ROU assets were valued at $20.2 million and are included in Other assets on the consolidated balance sheet.

The components of lease cost for the year ended December 31, 2019 were as follows (in thousands):


Operating lease cost	$	5,463
Variable lease cost	1,366
Sublease income	(942)
Net lease cost	$	5,887

As of December 31, 2019, the maturities of our operating lease liabilities were as follows (in thousands):


2020	5,913
2021	6,507
2022	6,688
2023	6,536
2024	5,588
Thereafter	11,068
Total lease payments	42,300
Present value adjustment	(11,727)
Lease liabilities	$	30,573