Leases

12 Months Ended

Dec. 31, 2019

We have non-cancelable operating leases consisting of administrative and research and development office space for our Emeryville, California headquarters and former headquarters in San Diego, California that will expire in May 2027 and March 2020, respectively. Our Emeryville lease includes a renewal option for an additional five years, which was not included in our determination of the lease term under the legacy lease standard as renewal was not reasonably assured at the inception of the lease. As a result, the renewal option to extend the lease was not included in determining our ROU assets and lease liabilities. Our former headquarters has been subleased to an unrelated third party for the remainder of our original lease term, which expires on March 31, 2020. As part of our acquisition of Modis in September 2019, we assumed the lease for Modis’ headquarters in Oakland, California. The Oakland lease expires in July 2021 and has been included in our ROU assets and lease liabilities in our consolidated balance sheets. We do not have any material finance leases or service contracts with lease arrangements. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Information regarding lease expense, remaining lease term, discount rate, and other select lease information for the year ended December 31, 2019 were as follows (in thousands):


	Year Ended December 31, 2019
Components of lease costs:
Operating lease cost	$	2,045
Short-term lease cost⁽¹⁾	851
Sublease income	(580)
Total lease expense	$	2,316

⁽¹⁾Short-term lease cost included $0.2 million related to a short-term lease that expired in March 2019.


Other lease information	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities	$	1,842
Right-of-use lease assets obtained in exchange for new lease liabilities, noncash	$	354


Supplemental balance sheet information related to operating leases	December 31, 2019
Right-of-use assets	$	7,774

Current portion of operating lease liabilities	$	1,322
Operating lease liabilities, net of current portion	10,752
Total operating lease liabilities	12,074

Weighted average remaining lease term	7.2 years
Weighted average discount rate, weighted based on the remaining balance of lease payments	6.0		%

Maturities of operating lease liabilities as of December 31, 2019 were as follows (in thousands):


	Operating Lease
2020	$	1,986
2021	1,957
2022	1,894
2023	1,951
2024	2,010
Thereafter	5,101
Total lease payments	14,899
Less: imputed interest	(2,825)
Total operating lease liabilities	$	12,074

Prior to the adoption of the new lease standard on January 1, 2019, our leases were all classified as operating leases. As a result, they were not required to be recorded on the consolidated balance sheets. Total rent expense under operating leases for the years ended December 31, 2018 and 2017 was $1.6 million and $1.8 million, respectively.

As of December 31, 2018, future minimum rental payments under our non-cancelable operating leases and future minimum payments to be received from subleases were as follows (in thousands):


	Gross Rental Payments		Sublease Rental Income		Net Rental Payments
2019	$	1,777	$	(576)	$	1,201
2020	1,788		(148)		1,640
2021	1,839		—		1,839
2022	1,894		—		1,894
2023	1,951		—		1,951
Thereafter	7,296		—		7,296
Total	$	16,545	$	(724)	$	15,821