7.	Operating Leases

The Company has

five

operating leases for office and laboratory space used to conduct business. The exercise of lease renewal options is at our discretion. There is

one

lease which contains renewal options to extend the lease terms included in our Right-Of-Use (“ROU”) assets and lease liabilities as they are reasonably certain of exercise. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise. As most of the Company's leases do

not

provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the lease commencement date in determining the net present value (NPV) of the lease payments.

As of

June 30, 2020,

the Company recognized a Right-Of-Use (“ROU”) asset of

$4.7

million and an operating lease liability of

$5.2

million based on the present value of the minimum rental payments as a result of adoption of ASC Topic

842.

The weighted average discount rate used for leases as of

June 30, 2020

3.9%.

The weighted average lease term as of

June 30, 2020

5.4

years. The operating lease expense for the

three

and

six

months ended

June 30, 2020

was

$257

thousand and

$564

thousand, respectively.

Maturities and balance sheet presentation of the Company's lease liabilities for all operating leases as of

June 30, 2020

is as follows (in thousands):

2020		519
2021		1,041
2022		1,028
2023		1,096
2024		1,035
2025		593
2026		458
Total Lease Payments		5,770
Less Interest:		(576	)
Present value of lease liabilities	$	5,194

Current operating lease liabilities	$	890
Long-term operating lease liabilities		4,304
Total	$	5,194