NOTE 7. LEASES

The Company has obtained the right of use for office space assets under two operating lease agreements. The Company has evaluated its facility leases and determined that, effective upon the adoption of Topic 842, the leases evaluated are all operating leases. The Company has performed an evaluation of its other contracts with suppliers and collaborators in accordance with Topic 842 and has determined that, except for the facility leases described below, none of the Company’s contracts contain a lease.

The Company obtained the right of use of office space located in Fremont, CA under a lease agreement entered into in September 2008, which was most recently amended in April 2016. The office space consists of 61,784 square feet, plus a further 10,716 square feet beginning in September 2019, with the entire lease terminating on September 10, 2021. The Company has an option to extend the term by five years as to the entire premises, by giving written notice of its election to exercise such option at least twelve months but not more than eighteen months prior to the end of the expiration of the lease term. This option to extend the lease term by five years has not been included in the calculation since currently the exercise of the option is highly uncertain and therefore deemed not probable. The Company also obtained the right of use of 3,250 square feet of office space located in Waltham, MA in October 2018 that terminates on September 30, 2021.

All of the Company’s leases are operating leases. Certain of the leases have both lease and non-lease components. The Company has elected to account for each separate lease component and the non-lease components associated with that lease component as a single lease component for all classes of underlying assets. As of June 30, 2019, the weighted average discount rate used for the calculations was 12.99% and the weighted average remaining lease term was 2.25 years.

The following table provides additional details of the leases presented in the balance sheets (in thousands except remaining life and discount rate):


	June 30, 2019
Facilities
Right of use assets	$	4,919

Current portion of lease liabilities		2,318
Operating lease liability, net of current portion		3,433
Total liabilities	$	5,751

Weighted-average remaining life		2.25	years
Weighted-average discount rate		12.99	%

The lease costs, which are included in operating expenses in our condensed consolidated statements of operations, were as follows (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Facilities
Operating lease cost	$	648	$	1,296
Cash paid for operating lease		616		1,230

The following table summarizes the Company’s undiscounted cash payment obligations for its operating lease liabilities as of June 30, 2019 (in thousands):


Ending June 30,
2019 (remaining six months)	$	1,415
2020		3,065
2021		2,183
Thereafter		—
Total lease payments		6,663
Imputed interest		(912)
Total lease liabilities	$	5,751