Lease Commitments

9 Months Ended

Sep. 30, 2020

6. Lease Commitments

As of September 30, 2020, the Company had operating leases for office space in both Buffalo Grove, Illinois and Florham Park, New Jersey, with remaining lease terms of 4.6 years and 4.9 years, respectively. Both operating leases contain an option to extend the term for one additional five year period, which was not considered in the determination of the right-of-use asset or lease liability as the Company did not consider it reasonably certain that it would exercise such options.

The total rent expense for the three and nine months ended September 30, 2020 was approximately $0.2 million and $0.4 million, respectively. There was no rent expense for the three and nine months ended September 30, 2019.

The following table summarizes supplemental balance sheet information related to the operating leases as of September 30, 2020 and December 31, 2019.

	September 30,		December 31,
	2020		2019
Assets:
Operating lease right-of-use assets		2,485		933
Total right-of-use assets	$	2,485	$	933

Liabilities:
Operating lease liabilities, current		431		161
Operating lease liabilities, non-current		1,644		635
Total operating lease liabilities	$	2,075	$	796

As of September 30, 2020, the future minimum annual lease payments under the operating leases were as follows (in thousands):

2020	$	120
2021		490
2022		503
2023		516
2024		529
Thereafter		342
Total minimum lease payments	$	2,500

Less: amount representing interest		(425	)
Present value of operating lease liabilities		2,075
Less: operating lease liabilities, current		(431	)
Operating lease liabilities	$	1,644

Weighted-average remaining lease term (in years)		4.81
Weighted-average incremental borrowing rate		7.25	%

Operating cash flows for the nine months ended September 30, 2020 included $0.8 million in cash payments for operating leases, $0.6 million of which were prepaid lease payments. There were no lease costs for the nine months ended September 30, 2019.