The Company’s previous operating lease for its headquarters facility office space in Redwood City, California, terminated in August 2019, along with the related subleases. One of the subleases was with Capnia, of which the Company was a joint owner until September 2019. Sublease income received from Capnia during the three and six months ended June 30, 2019 was approximately $25,000 and $49,000, respectively.

In July 2019, the Company executed a non-cancellable lease agreement for 6,368 square feet of new space in Redwood City, California, which began in September 2019 and expires in May 2021. The lease also provides the Company with the right to use office furniture in the space and allows the purchase of this furniture at the end of the lease term for $1. The lease agreement requires monthly lease payments of approximately $29,000 beginning in November of 2019, with an increase to approximately $30,000 per month in September of 2020. The Company has accounted for the new lease as an operating lease for the office space and a finance lease for the office furniture, based on their relative standalone prices.

The components of lease expense during the three and six months ended June 30, 2020 and 2019 were as follows (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020		2019
Operating lease cost:
Operating lease cost	$	77	$	113		$	153	$	232
Sublease income		—		(65	)		—		(130	)
Total operating lease cost	$	77	$	48		$	153	$	102

Finance lease cost:
Amortization of right-of-use assets	$	3	$	—		$	5	$	—
Interest on lease liabilities		—		—			1		—
Total finance lease cost	$	3	$	—		$	6	$	—

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated.