5. 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 one year to four 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 March 31, 2020.

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 condensed consolidated balance sheets (in thousands):


		March 31,
	Balance sheet location	2020
Assets
Operating lease assets, net	Operating lease right of use assets	$	7,286
Finance lease assets, net	Finance lease right of use assets		1,471
Total lease assets			8,757
Liabilities
Current operating lease liability	Operating lease liabilities, current		1,798
Current finance lease liability	Accrued expenses and other current liabilities		156
Total current lease liabilities			1,954
Non-current operating lease liability	Operating lease liabilities, non-current		4,799
Non-current finance lease liability	Other non-current liabilities		324
Total non-current lease liabilities			5,123
Total lease liabilities		$	7,077

No lease agreement was terminated in the three months ended March 31, 2020. In the three months ended March 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 condensed consolidated statements of operations and comprehensive loss (in thousands):


		Three months ended
	Income statement location	March 31, 2020
Operating lease expenses	Research and development expenses	$	395
	General and administrative expenses		99
Finance lease amortization expenses	Research and development expenses		96
	General and administrative expenses		4
Interest on finance lease liabilities	Interest expenses		2
Sublease income	Other income (expense)		(38)
Net lease expense		$	558

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


	March 31, 2020
	Operating lease		Finance lease		Total
2020 (remaining nine months)		1,368		114		1,482
2021		1,801		135		1,936
2022		1,800		120		1,920
2023		1,788		117		1,905
2024		127		10		137
Thereafter		—		—		—
Total lease payments		6,884		496		7,380
Less: interest		287		16		303
Present value of lease liabilities	$	6,597	$	480	$	7,077

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


	March 31,
	2020
Weighted average remaining lease term in years	3.8
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:


	March 31,
	2020
Weighted average remaining lease term in years	3.7
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 0.9 years without an option to renew and has been qualified as an operating lease. The Company recognizes sublease income in its condensed consolidated statements of operations and comprehensive loss. The Company continued to account for the head lease as it did before sublease commencement.