The Company leases office space in Oakwood Village, Ohio, Mountain View, California, and Denver, Colorado under noncancelable operating lease agreements. The Company leases and occupies approximately 19,800 square feet of office space in Oakwood Village, Ohio, which expires in October 2026. The Company entered into an office lease agreement to lease approximately 25,500 square feet of office space located in Mountain View, California, with an expiration date of July 2025. In April 2018, the Company entered into a lease agreement to lease additional office space in Mountain View, California of approximately 24,600 square feet, which will expire in December 2025. The Company has the option to extend the term of the lease for a period of up to five years. The Company has also entered into a sub-lease agreement to lease approximately 19,800 square feet of office space located in Denver, Colorado. The sub-lease commenced in June 2019 and will expire in July 2021; the Company does not intend to extend the term of this sub-lease. On March 3, 2021, we entered into a sub-lease agreement to lease approximately 12,800 square feet of office space in Denver, Colorado. The sub-lease will commence on September 1, 2021 and will expire October 31, 2024.

In recognition of the right-of-use assets and the related lease liabilities, the option to extend the lease term have not been included as the Company is not reasonably certain that it will exercise any such option. At December 31, 2020, the weighted-average remaining lease term in years is 4.7 years and the weighted-average discount rate used is 7.7%. The Company recognized of $3.1 million and $2.9 million lease costs arising from lease transactions for the years December 31, 2020 and 2019, respectively.

During the years ended December 31, 2020 and 2019, the Company recognized the following cash flow transactions arising from lease transactions (in thousands):

	For the Year Ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities	$	3,145	$	2,451
Right-of-use assets obtained in exchange for new operating lease liabilities		643		1,647

At December 31, 2020, the future payments and interest expense for the operating leases are as follows (in thousands):

Year Ended December 31,	Future Payments
2021	$	2,847
2022		2,659
2023		2,738
2024		2,774
2025		2,096
Thereafter		147
Total undiscounted cash flows	$	13,261
Less: imputed interest		(2,129	)
Present value of lease liabilities	$	11,132

Rent expense for operating leases for the year ended December 31, 2018 using the accounting guidance in effect at that time was $1.4 million.

In the normal course of business, the Company may become involved in legal proceedings. The Company will accrue a liability for legal proceedings when it is probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued.

On September 10, 2019, a complaint for patent infringement was filed by Varian Medical Systems, Inc., in U.S. District Court for the Northern District of California against the Company. Captioned Varian Medical Systems, Inc., v. ViewRay, Inc., the complaint alleges that the Company infringes two related patents, U.S. Patent Nos. 8,637,841 and 9,082,520 and seeks injunctive relief and monetary damages. The Company filed its answer on November 1, 2019. We believe the allegations in the complaint are without merit and have been vigorously defending the litigation.

On July 7, 2020 and July 31, 2020, the Company filed petitions with the Patent Trial & Appeal Board of the United States Patent and Trademark Office (PTAB), requesting institution of inter partes review (IPR) and cancellation of claims 1-3, 5-8, 10, 13, 14 of Varian’s U.S. Patent No. 9,082,520. On August 13, 2020, the Company filed a separate petition with the PTAB, requesting an IPR and cancellation of claims 1-4 and 20-22 of Varian’s U.S. Patent No. 8,637,841.

In August 2020, Varian announced that it has entered into a definitive agreement to combine with Siemens Healthineers AG. That deal has been approved by Varian’s board of directors, its shareholders, and has passed regulatory review by US government authorities. The merger is expected to close in the first half of 2021, at which time Siemens has agreed to dismiss Varian’s lawsuit and release ViewRay from all claims brought by Varian. In light of this, both the district court case and the proceedings before the PTAB are currently stayed, pending confirmation of the Siemens/Varian merger.

On September 13, 2019, a class action complaint for violation of federal securities laws was filed in U.S. District Court for the Northern District of Ohio against the Company, its chief executive officer, chief scientific officer, and former chief financial officer. On December 19, 2019, the court appointed Plymouth County Retirement Association as the lead plaintiff, and on February 28, 2020 the lead plaintiff filed an amended complaint asserting securities fraud claims against the Company, its chief executive officer, chief operating officer, chief scientific officer, and former chief executive officer and former chief financial officer. Now captioned Plymouth County Retirement Association v. ViewRay, Inc., et al., the amended complaint alleges that the Company violated federal securities laws by issuing materially false and misleading statements that failed to disclose adverse facts concerning its business, operations, and financial results, and seeks damages, interest, and other relief. The Company filed a motion to dismiss the amended complaint on May 28, 2020. While the initial motion to dismiss was pending, the plaintiff was granted leave to file a second amended complaint. A motion to dismiss the second amended complaint was filed on September 16, 2020. That motion has been fully briefed, and is pending before the District Court. The Company believes the allegations in the complaint are without merit and intend to vigorously defend the litigation.

On July 22, 2020, a stockholder derivative lawsuit was filed against ViewRay (as a nominal defendant) and certain of its current and former officers and directors in the U.S. District Court for the Northern District of Ohio. This action alleges, purportedly on behalf of ViewRay, that the officers and directors violated Section 14(a) of the Securities Exchange Act of 1934, breached their fiduciary duties, wasted corporate assets, and were unjustly enriched based on factual assertions substantially similar to those in the class action complaint described above. The complaint seeks, among other things, damages awarded to ViewRay, restitution and disgorgement of profits in an unspecified amount, and corporate reforms. Due to the overlap between the allegations in the derivative complaint and those in the putative securities class action complaint, this lawsuit is stayed until March 3, 2021, pending a decision on the motion to dismiss the second amended complaint in the securities action.

Given the early stage of each of the litigation matters described above, at this time the Company is unable to reasonably estimate possible losses or form a judgment that an unfavorable outcome is either probable or remote. However, litigation is subject to inherent uncertainties, and one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect in the period in which they are resolved and on the Company’s business generally. In addition, regardless of their merits or their ultimate outcomes, lawsuits and legal proceedings are costly, divert management attention and may materially adversely affect the Company’s reputation, even if resolved in the Company’s favor.

At December 31, 2020, the Company had $2.3 million in outstanding firm purchase commitments.