5. Leases

During 2017, the Company entered into an operating lease for 27,974 square feet of office space for its corporate headquarters located in Chandler, Arizona, that expires in January 2022. The Company has the option to renew the lease through August 2024; however, the Company does not consider it reasonably certain it will exercise the renewal option.

The Company leases office and lab space for its design facility located in Austin, Texas, under an operating lease that expires in January 2022. The Company has the option to renew the lease for an additional five years; however, the Company does not consider it reasonably certain it will exercise the renewal option.

The Company has another operating lease for its Arizona manufacturing facility, which includes office and fabrication space. This lease is cancellable upon 24 months’ notice by either of the parties and expires in January 2021.

The undiscounted future non-cancellable lease payments under the Company’s operating leases were as follows (in thousands):


As of September 30, 2019	Amount
2019 (remaining three months)	$	430
2020		1,736
2021		859
2022		50
2023		—
Thereafter		—
Total undiscounted lease payments		3,075
Less: Present value adjustment		(162)
Total operating lease liabilities		2,913
Less: Current portion of operating lease liabilities		(1,606)
Total operating lease liabilities, net of current portion	$	1,307

As determined under ASC 840, the future minimum rental commitments under the Company’s operating leases at December 31, 2018 were as follows (in thousands):


Year Ending December 31,	Amount
2019	$	1,645
2020		1,701
2021		846
2022		47
2023		—
Thereafter		—
Total minimum lease payments	$	4,239

Other information related to the Company's operating lease liabilities was as follows:


As of September 30, 2019
Weighted-average remaining lease term (years)	1.89
Weighted-average discount rate	6.01	%

Lease costs for the Company’s operating leases were $401,000 and $386,000 for the three months ended September 30, 2019 and 2018, respectively, and $1.2 million for each of the nine months ended September 30, 2019 and 2018. Variable lease payments for operating leases were immaterial for the three and nine months ended September 30, 2019 and 2018. Lease costs for the Company’s finance lease were immaterial for the three and nine months ended September 30, 2019 and 2018.