The Company’s leases consist of office equipment and 37,438 square feet of office and laboratory space in Watertown.

On January 31, 2020, the Company amended its existing operating lease in order to surrender a portion of its leased space, reducing the leased premises by a total of 15,899 square feet from approximately 37,438 square feet to approximately 21,539 square feet. The amendment was accounted for as a modification of the original lease agreement which required the Company to reassess and remeasure the lease liability based on the incremental borrowing rate determined as of the modification date. As a result, the amendment to the original lease resulted in a $2.0 million reduction of the lease liability and corresponding right-of-use asset as of the effective date of the amendment, with an immaterial gain recorded to operating expenses.

	Three Months Ended			Three Months Ended
	March 31,			March 31,
	2020			2019
Operating lease cost	$	343		$	474
Variable lease cost		226			296
Total lease cost	$	569		$	770

Weighted-average remaining lease term (years)		2.64			3.65
Weighted-average discount rate		9.25	%		9.25	%

Cash paid for amounts included in the measurement of the lease liabilities were $0.3 million for the three months ended March 31, 2020.

As of March 31, 2020, the Company’s operating lease liabilities were as follows (in thousands):

	Amount
2020		907
2021		1,138
2022		1,027
Thereafter		—
Less: Imputed interest		(386	)
Present value of lease payments	$	2,686

On February 7, 2020, DHL Supply Chain (Netherlands) B.V, or DHL, made an arbitration demand against the Company with Foundation UNUM.

As of May 6, 2020, ten lawsuits have been filed by alleged Tetraphase stockholders against us, members of our board of directors, AcelRx and/or Merger Sub, challenging the Merger.

Please refer to Part II Item 1, Legal Proceedings, of this Form 10-Q for further information regarding these matters.