The Company adopted ASC 842 as of January 1, 2019, using the modified retrospective approach and therefore prior year financial statements were not recast under the new standard.

In March 2017, the Company entered into an operating facility lease agreement for approximately 34,500 rentable square feet located at the 1020 Space. The lease commenced in August 2017 for a period of 87 months with one renewal option for a five-year term. The Company did not include the renewal option period as the Company determined it was not reasonably certain the lease would be renewed as of the modification date.

In October 2018, the Company executed a sublease agreement in Palo Alto, California for approximately 4,240 square feet for office space. The rental term of the sublease commenced on October 30, 2018 and expires August 31, 2020.

The Company’s rent expense including both short-term and variable lease components of $0.5 million associated with the facility leases was $2.5 million for the year ended December 31, 2019. Cash paid for amounts included in the measurement of lease obligations for operating cash flows from operating leases for 2019 was $2.7 million. As of December 31, 2019, the Company’s operating leases had a weighted average remaining lease term of 4.6 years and a weighted average discount rate of 7.75%, which approximates the Company’s incremental borrowing rate.

As of December 31, 2019, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands):

Year Ending December 31,
2020	$	2,668
2021		2,618
2022		2,697
2023		2,777
2024		2,373
Total future minimum lease payments		13,133
Less: discount		(2,900	)
Total lease liabilities	$	10,233

As of December 31, 2018, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands):

Year Ending December 31,
2019	$	2,652
2020		2,668
2021		2,618
2022		2,697
2023		2,777
Thereafter		2,373
	$	15,785

In August 2018, the Company entered into an operating sublease agreement with EVA Automation, Inc. (“EVA”) for the 1020 Space referenced above. The 1020 Space Sublease commenced on October 1, 2018 for 73 months. EVA is entitled to an abatement of base rent of approximately $0.9 million for the first five full calendar months of the term of the sublease. Lease income associated with this sublease is recorded in other income in the accompanying consolidated statements of operations. The Company has recorded lease income associated with this sublease of approximately $2.5 million and $0.6 million for 2019 and 2018 respectively. During 2019, cash received from EVA was $2.3 million, which amount was included in prepaid expenses and other assets for operating cash flows.

Future base rent and additional rent EVA shall pay to the Company over the sublease term as of December 31, 2019, are as follows (in thousands):

Year Ending December 31,
2020	$	2,563
2021		2,628
2022		2,695
2023		2,764
2024		2,355
	$	13,005

In March 2017, the Company entered into an operating facility lease agreement for approximately 34,500 rentable square feet located at 1020 Marsh Road, Menlo Park, California and for approximately 17,400 rentable square feet located at 1060 Marsh Road. In September 2017, the Company opted out of its intent to occupy 1060 Marsh Road. The Company began occupying 1020 Marsh Rd in August 2017. The lease has a term of 86 months from the commencement date as defined in the lease agreement with the Company’s option to extend the term of the lease for an additional five years. The Company is obligated to make lease payments totaling approximately $20.0 million over the initial term of the lease. In connection with this lease, the landlord is providing a tenant improvement allowance of approximately $1.9 million for the 1020 Space, for costs associated with the design, development and construction of the Company’s improvements. The Company is obligated to fund all costs incurred in excess of the tenant improvement allowance. The Company provided the Landlord with a letter of credit to secure its obligations under the lease in the initial amount of approximately $2.4 million, reported as restricted cash on the consolidated balance sheets which is subject to reductions in future years if certain financial hurdles are met.

Under the terms of the lease agreement, the Company has indemnified the landlord during the construction period. Accordingly, for accounting purposes, the Company has concluded that it is the deemed owner of the building during the construction period and the Company capitalized approximately $8.9 million within build-to-suit lease asset and recognized an $7.3 million corresponding build-to-suit lease obligation in non-current liabilities in the consolidated balance sheet as of December 31, 2018. Of the $8.9 million, approximately $3.5 million has been recorded as a build-to-suit asset related to construction costs incurred by the Company as of December 31, 2018. Rent expense was $0.3 million for the year ended December 31, 2018.