Leases

12 Months Ended

Dec. 31, 2019

The Company has entered into various operating lease agreements for office space, with remaining terms ranging from 1 year to 8 years some of which include one or more options to renew. As leases approach maturity, the Company considers various factors such as market conditions and the terms of any renewal options that may exist to determine whether we will renew the lease, as such, we do not include renewal options in our lease terms for calculating our lease liability, as the renewal options allow us to maintain operational flexibility and we are not reasonably certain we will exercise these renewal options at the time of the lease commencement.

Operating lease expense for the year ended December 31, 2019 was $4.4 million which includes both lease and non-lease components (primarily common area maintenance charges and property taxes).

Rent expense for the facility leases was $4.6 million and $1.8 million for the years ended December 31, 2018 and 2017, respectively.

As of December 31, 2019, the weighted-average remaining lease term and weighted-average discount rate for operating leases is 6.4 years and 7.77% respectively.

The following table summarizes our future principal contractual obligations for operating lease commitments as of

December 31, 2019:



Year Ending December 31,
	(in thousands)
2020	$	7,582
2021	7,534
2022	7,684
2023	8,276
2024 and thereafter	20,816
Total operating lease payments	$	51,892
Less: Imputed Interest	(11,496		)
Total operating lease liabilities	$	40,396

As of December 31, 2019, the Company has additional future minimum lease payments relating to a facility agreement had not yet commenced amounting to $13.7 million (imputed interest of $3.4 million) net of sublease income of $0.1 million.

Finance leases are not material to the Company's consolidated financial statements.

ASC 840 Disclosures

The Company elected modified retrospective transition approach and is required to present previously disclosed information under the prior accounting standards for leases. Total minimum lease payments as of December 31, 2018 are as follows:



Year Ending December 31,
	(in thousands)
2019	$	4,099
2020	5,273
2021	5,358
2022	5,557
2023	6,105
2024 and thereafter	15,786
Total	$	42,178