Leases

January 2012,

the Company entered into a lease agreement for office and laboratory facilities in Sunnyvale, California. The lease agreement, as amended, commenced in

March 2012

and terminated in

April 2018.

February 1, 2017,

the Company entered into a sublease agreement (the “Sublease”) for approximately

12,400

square feet of building space for the relocation of the Company’s corporate headquarters to Englewood, Colorado (the “Sublease Premises”), which was effective as of

January 26, 2017.

The lease term commenced on

June 1, 2017

and will terminate in

May 2020.

The Company relocated its corporate headquarters from Sunnyvale, California to Englewood, Colorado in

June 2017.

The monthly base rent under the Sublease is equal to

$20.50

per rentable square foot of the Sublease Premises during the

first

year. The monthly base rent is equal to

$21.12

and

$21.75

per rentable square foot during the

second

and

third

years, respectively. In connection with the execution of the Sublease, the Company also agreed to pay a security deposit of approximately

$22,000.

The Company was also provided an allowance of approximately

$88,000

for certain tenant improvements relating to the engineering, design and construction of the Sublease Premises which has been reimbursed.

Rent expense for the

three

months ended

March 31, 2018

was

$138,000.

September 2018,

the Company entered into a

-month noncancelable operating lease agreement for office equipment. The lease commenced on

September 20, 2018.

The monthly payment is approximately

$3,000.

After the adoption of ASU

842

– Leases on

January 1, 2019,

operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property. At lease inception, the Company determines the lease term by assuming the exercise of those renewal options that are reasonably assured. The lease term is used to determine whether a lease is financing or operating and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Leases with an initial term of

months or less are

not

recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The following table reflects the Company's lease assets and lease liabilities at

March 31, 2019

and

January 1, 2019:

	March 31,		January 1,
	2019		2019

Assets:
Operating lease right-of-use assets	$	565	$	629

Liabilities:
Current operating lease liabilities	$	238	$	230
Noncurrent operating lease liabilities		337		399
	$	575	$	629

The operating lease right-of-use assets are included in other assets on the condensed consolidated balance sheet. The operating lease liabilities are included in accrued liabilities and other noncurrent liabilities on the condensed consolidated balance sheet.

The operating leases expense for the

three

months ended

March 31, 2019

was

$75,000.

As of

March 31, 2019,

the maturity of operating lease liabilities was as follows:

Year Ending December 31,
2019 (remaining nine months)	$	222
2020		303
2021		137
Total lease payments		662

Less: Interest		(87	)

Present value of lease liabilities	$	575

The weighted average remaining lease term was approximately

months as of

March 31, 2019.

The weighted average discount rate for the

three

months ended

March 31, 2019

was

12.5%.