The Company entered into a one-year operating lease in September 2017 for laboratory facilities in San Francisco, California, which continued thereafter on a month-to-month basis. This was terminated in May 2020. In May 2020, the Company entered into a one-year operating lease for laboratory facilities in San Carlos, CA. The Company has provided $30,000 as a security deposit for the lease, which is included in the current assets on the condensed balance sheet at June 30, 2020.

In November 2017, the Company entered into an operating lease for an administrative facility in San Francisco, California, which expires in November 2022. The Company has provided a security deposit of $0.2 million as collateral for the lease, which is included in non-current assets on the condensed balance sheet at June 30, 2020.

On March 27, 2019 the Company entered into an amendment to the lease dated November 14, 2017 and the new lease commenced in August 2019. In connection with the amendment, the Company leases 10,552 rentable square feet. The amended lease is for a term of 87 months and provide for $6.4 million in payments over the lease term. The Company has provided an additional security deposit of $0.2 million which is included in non-current assets on the condensed balance sheet at June 30, 2020.

Upon the adoption of ASU 2016-02 on January 1, 2019, the Company recognized a lease liability and related ROU asset of $1.2 million and $1.1 million, respectively, based on the present value of lease payments for the remaining term of the Company’s prior lease. Upon the commencement of the amended lease, the Company recognized $56,000 in tenant improvements from the prior lease as expense, a gain on extinguishment of the previous lease liability of $69,000, and wrote-off the total ROU assets and lease liabilities of $1.0 million and $1.0 million, respectively. As of June 30, 2020 total ROU assets and lease liabilities per the amended lease were approximately $3.8 million and $4.9 million, respectively. All operating lease expense is recognized on a straight-line basis over the lease term.

	Six months ended June 30, 2020
Cash payments over lease term (in thousands)	$	5,880
Weighted average remaining lease term (months)		76
Weighted average discount rate ⁽¹⁾		6	%

(1)

Because the rate implicit in our lease is not readily determinable, the Company used the Company’s incremental borrowing rate. In determining our incremental borrowing rate for each lease, we considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to our creditworthiness, the impact of collateralization and the term of each of our lease agreements.

Future minimum lease payments as of June 30, 2020 are as follows (in thousands):

	Operating
Year	Lease Commitments
2020 (remaining six months)	$	427
2021		869
2022		895
2023		922
2024		950
Thereafter		1,817
Total		5,880

The Company’s rent expense was $0.2 million and $0.4 million for the three and six months ended June 30, 2020 and $0.1 million and $0.2 million for the three and six months ended June 30, 2019.

In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to vendors, lessors, business partners, board members, officers, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company, negligence or willful misconduct of the Company, violations of law by the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements, and thus, there are no claims that the Company is aware of that could have a material effect on the Company’s balance sheets, statements of operations, or statements of cash flows.