Operating Leases

9 Months Ended

Sep. 30, 2020

5. Operating Leases

The Company leases its laboratory and office facilities in South San Francisco, California under a non-cancelable operating lease with expiration date in July 2024 (“Original Lease”).

On September 30, 2019, the Company and the landlord of the laboratory and office facilities in South San Francisco entered into a second amendment (“Second Amendment”) to lease additional office spaces at the same location. The Company accounts for the Second Amendment as a separate contract and recognized a related right-of-use (“ROU”) asset and lease liability of $1.2 million on the lease commencement date in August 2020.

The maturities of operating lease liabilities as of September 30, 2020 are as follows (in thousands):

As of September 30, 2020	Operating Leases
Remaining fiscal 2020	$	478
2021		1,930
2022		1,982
2023		2,036
2024		1,647
Total lease payments		8,073
Less: Interest		(987	)
Present value of lease liabilities	$	7,086
Amounts recognized on the balance sheet
Current lease liabilities	$	1,502
Long-term lease liabilities		5,584
Total lease liabilities	$	7,086

Operating lease cost was $0.4 million and $0.4 million for the three months ended September 30, 2020 and September 30, 2019, respectively, and $1.1 million and $1.2 million for the nine months ended September 30, 2020 and September 30, 2019, respectively.

As of September 30, 2020, the ROU assets of $5.5 million are included in non-current assets on the balance sheet, and lease liabilities of $7.1 million are included in current liabilities and non-current liabilities on the balance sheet.

As of September 30, 2020, the remaining term for the operating lease in South San Francisco, California is 3.8 years, and the discount rate used to measure the lease liability for such operating lease upon recognition is 7.0% for the Original Lease and 6.0% for the Second Amendment.

During the nine months ended September 30, 2020, cash paid for amounts included in operating lease liabilities of $1.2 million is included in cash flows from operating activities on the statement of cash flows.