Leases

6 Months Ended

Jun. 30, 2020

Leases

Leases

7. Leases

The Company leases office and laboratory space in Monrovia, CA under a lease that expires September 30, 2020; the original lease was a 66-month lease that expired June 2020. In April 2020, the Company entered into an amendment to the lease to extend the term of the lease under the original terms through September 2020. In July 2017, the Company entered into a lease agreement for additional space in the same building with a lease that continues through September 2022, with an option to renew for an additional five years. The Company assesses that it is likely to exercise the option of the lease term extension.

The Company also leases office space in San Diego, CA that expired July 2020. The lease includes an option to renew for an additional five years and the Company did not exercise the option to extend this lease.

The Company leases additional office space in San Diego, CA through August 2022, with an option to extend for an additional five years. The Company assesses that it is unlikely to exercise the option to extend the lease term.

The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. As of June 30, 2020, the Company did not have additional operating leases that have not yet commenced.

The following table reconciles the undiscounted cash flows for the operating leases at June 30, 2020 to the operating lease liabilities recorded on the balance sheet (in thousands):

Years ending December 31,
For the remainder of 2020	$	1,297
2021		2,583
2022		2,203
2023		1,347
2024		1,366
2025		1,212
Thereafter		1,238
Total undiscounted lease payments		11,246
Less: Imputed interest		(1,526)
Present value of lease payments	$	9,720
Lease liabilities - short-term	$	2,094
Lease liabilities - long-term		7,626
Total lease liabilities	$	9,720

The following table summarizes lease costs and cash disclosures for the three and six months ended June 30, 2020 (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Operating lease cost	$	648	$	650	$	1,297	$	1,299
Variable lease cost		38		47		59		57
Total lease costs	$	686	$	697	$	1,356	$	1,356
Cash paid for amounts included in
the measurement of lease liabilities	$	566	$	344	$	1,123	$	854

The amendment to the Monrovia, CA lease is a lease modification. Non-cash activities involving ROU assets related to the lease modification were $0.1 million for three and six months ended June 30, 2020.

At June 30, 2020, the weighted-average remaining lease term for operating leases was 5.2 years, and the weighted-average discount rate for operating leases is 5.5%