9. LEASES

On October 30, 2018, the Company signed a lease for 11,793 square feet of office and laboratory space in San Jose, California. The lease commenced in December 2018 and will terminate in December 2023. The lease requires payment of maintenance, utilities, taxes, insurance and other operating expenses associated with the leased space. On February 14, 2020, the Company entered into a sublease agreement for its 11,793 square feet office and laboratory space in San Jose, California. The sublease covers the term of the master lease. Payments from the sublease are expected to materially offset the costs for lease and related operating expenses. The Company paid approximately $103,000 related to the consummation of the sublease for the remainder of the master lease. The Company analyzed the operating lease right-of-use asset and determined that the $103,000 should be expensed in operations as there is no related increase to the right-of-use asset.

Lease expense is recognized on a straight-line basis over the lease term and was approximately $93,000 for each of the three months ended April 30, 2020 and 2019. Cash paid for amounts included in the measurement of the operating lease liability for the three months ended April 30, 2020 and 2019 was approximately $93,000 and $65,000, respectively, and was included in net cash used in operating activities in the statement of cash flows. The Company received approximately $94,000 in sublease income for the three months ended April 30, 2020, which was offset against rent expense within operating expenses.

The future minimum payments and future minimum income for sublease rentals under the Company’s operating lease as of April 30, 2020 are as follows (in thousands):


	Operating Lease Payments		Operating Lease Income
Fiscal years ending January 31,

2021	$	280	$	279
2022		382		384
2023		392		396
2024		334		337
Total future minimum lease payments or income		1,388	$	1,396
Less: present value discount		(432)
Present value of operating lease liabilities	$	956

The Company recorded financing leases related to laboratory equipment purchased in March 2018 and May 2019. The leased asset values were approximately $61,000 and $54,000, respectively, and the corresponding current and long-term liabilities were recorded in accrued expenses and other current liabilities and other long-term liabilities, respectively. In February 2020, the Company paid approximately $70,000 to execute the buyout provisions of the financing leases.