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. As a result of the adoption, the Company derecognized $8.6 million of build-to-suit lease asset; $7.3 million of build-to-suit lease obligation and recorded the $1.3 million impact to accumulated deficit. Additionally, the Company recognized operating lease ROU assets of approximately $10.4 million, $2.2 million of leasehold improvements, an operating lease obligation of $12.6 million and derecognized deferred rent of $0.1 million as of January 1, 2019.

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 expired August 31, 2020.

In August 2020, the Company entered into a lease agreement in North Carolina for approximately 4,128 square feet for office space. The monthly lease payments will be approximately $9 thousand per month for a period of 63 months with a three-month rent abatement period. The lease has commenced in the fourth quarter of 2020.

The Company’s rent expense including both short-term and variable lease components of $0.5 million and $0.5 million associated with the facility leases was $2.1 million and $2.5 million for the years ended December 31, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of lease obligations for operating cash flows from operating leases for 2020 and 2019 was $2.3 million and $2.7 million, respectively. As of December 31, 2020, the Company’s operating leases had a weighted average remaining lease term of 3.9 years and a weighted average discount rate of 7.62%, which approximates the Company’s incremental borrowing rate.

As of December 31, 2020, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands):

Year Ending December 31,
2021	$	2,506
2022		2,983
2023		3,067
2024		2,643
2025		116
Thereafter		30
Total future minimum lease payments		11,345
Less: discount		(2,828	)
Total lease liabilities	$	8,517

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 72 months. EVA was 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. At the end of the first quarter ended March 31, 2020, the Company was informed by EVA that it will not be in a position to pay future sublease rental payments and intends to exit the sublease. For the year ended December 31, 2020, the Company recorded an impairment charge to long-lived assets as previously discussed in Note 2. In addition, associated with this impairment charge the Company recorded a write down totaling $1.4 million related to a straight-line sublease rent receivable balance and previously capitalized commission charges, which has been recorded in other expense within the condensed consolidated statement of operations for the year ended December 31, 2020. Overall, for the year ended December 31, 2020, the Company recorded sublease loss associated with this sublease of $13 thousand. For the year ended December 31, 2019, the Company recorded sublease income associated with this sublease of $2.5 million. Cash received from EVA was $1.2 million and $2.3 million for 2020 and 2019, respectively, which amount was included in the change in prepaid expenses and other assets for operating cash flows.