6. Leases

The Company leases real estate, including office and laboratory space and has entered into various other agreements with respect to assets used in conducting its business. The Company’s leases have remaining lease terms ranging from 1 years to 4 years. Some of the lease agreements contain rent holidays and rent escalation clauses that were included in the calculation of the right of use assets and lease liabilities. The Company is required to maintain a cash balance of $0.4 million to secure letters of credit associated with real estate leases. This amount was classified as non-current restricted cash in the consolidated balance sheet as of December 31, 2019.

Certain of the Company’s leases qualify as operating leases, and certain of its leases qualify as finance leases. The following table summarizes the presentation in the consolidated balance sheets (in thousands):


		December 31,
	Balance sheet location	2019
Assets
Operating lease assets, net	Operating lease right of use assets	$	7,875
Finance lease assets, net	Finance lease right of use assets		1,602
Total lease assets			9,477
Liabilities
Current operating lease liability	Operating lease liabilities, current		1,814
Current finance lease liability	Accrued expenses and other current liabilities		159
Total current lease liabilities			1,973
Non-current operating lease liability	Operating lease liabilities, non-current		5,290
Non-current finance lease liability	Other non-current liabilities		367
Total non-current lease liabilities			5,657
Total lease liabilities		$	7,630

In the year ended December 31, 2019 the Company terminated a lease of office space and derecognized the relating right of use asset and the lease liability of $0.2 million.

The following table summarizes the effect of lease costs in the Company’s consolidated statements of operations and comprehensive loss (in thousands):


		Year ended
	Income statement location	December 31, 2019
Operating lease expenses	Research and development expenses	$	1,108
	General and administrative expenses		712
Finance lease amortization expenses	Research and development expenses		350
	General and administrative expenses		14
Interest on finance lease liabilities	Interest expenses		9
Sublease income	Other income (expense)		(128)
Net lease expense		$	2,065

The minimum lease payments for the next five years and thereafter are expected to be as follows (in thousands):


	December 31, 2019
	Operating lease		Finance lease		Total
2020		1,826		155		1,981
2021		1,832		138		1,970
2022		1,830		122		1,952
2023		1,818		120		1,938
2024		128		10		138
Thereafter		—		—		—
Total lease payments		7,434		545		7,979
Less: interest		330		19		349
Present value of lease liabilities	$	7,104	$	526	$	7,630

Under the prior lease guidance minimum rental commitments under non-cancelable leases for each of the next five years and total thereafter as of December 31, 2018, were as follows (in thousands):


Year ending December 31	Amount
2019	$	520
2020		278
2021		43
2022		43
2023		11
Thereafter		—
Total	$	895

Rent expense under operating leases for the years ended December 31, 2018 and 2017 was $1.1 million and $0.6 million, respectively.

These annual minimum lease payments did not include the embedded lease obligations under service agreements, which commenced in the year ended December 2019.

The weighted average remaining lease term and weighted average discount rate of operating leases are as follows:


	December 31,
	2019

Weighted average remaining lease term in years	4.1
Weighted average discount rate (1)	2.3	%

(1) The majority of the contracts are concluded in euros. The discount rate was determined on a currency-equivalent basis.

The weighted average remaining lease term and weighted average discount rate of finance leases are as follows:


	December 31,
	2019

Weighted average remaining lease term in years	3.9
Weighted average discount rate (1)	1.7	%

(1) The contracts are concluded in euros. The discount rate was determined on a currency-equivalent basis.

The Company subleases certain of its leased real estate that it does not currently utilize to a third party. The sublease has a remaining lease terms of 1.2 years without an option to renew and has been qualified as an operating lease. The Company recognizes sublease income in its consolidated statements of operations and comprehensive loss. The Company continued to account for the head lease as it did before sublease commencement.