Leases

6 Months Ended

Jun. 30, 2019

Leases The Company has non-cancelable operating leases for manufacturing, laboratory and office space in Rockville, Maryland and a non-cancelable operating lease for laboratory and office space in Brisbane, California. A portion of the space under one of these leases is subleased to a third party. All of these leases include one or more options to renew, with those renewal periods ranging from five to 14 years. At June 30, 2019, the Company's weighted-average remaining lease term relating to its operating leases is seven years, with a weighted-average discount rate of 9.9%.

Upon adoption of ASC 842 on January 1, 2019, it was not reasonably certain that the Company would extend any of its operating leases, therefore the options to extend the lease terms were not recognized as part of the ROU assets or lease liabilities. During the three months ended March 31, 2019, the Company determined that it would exercise the option to extend one lease for an additional five years, therefore the Company remeasured the lease liability and adjusted the carrying amount of the ROU asset related to this lease. The Company made cash payments of $3.2 million for operating leases during the six months ended June 30, 2019. As of June 30, 2019, the Company’s ROU assets were valued at $17.1 million and are included in Other assets on the consolidated balance sheet.

The components of lease cost for the six months ended June 30, 2019 were as follows (in thousands):


Operating lease cost	$	2,701
Variable lease cost	618
Sublease income	(471)
Net lease cost	$	2,848

As of June 30, 2019, the maturities of our operating lease liabilities were as follows (in thousands):


Remainder of 2019	$	3,201
2020	5,603
2021	5,291
2022	5,450
2023	5,279
2024	4,293
Thereafter	10,081
Total lease payments	39,198
Present value adjustment	(11,276)
Lease liabilities	$	27,922