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OPERATING LEASES | 9 Months Ended
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Sep. 30, 2019
Leases [Abstract] |
OPERATING LEASES | 4. OPERATING LEASES As described in Note 1 on Summary of Significant Accounting Policies – New Accounting Pronouncements Recently Adopted, we adopted Topic 842 as of January 1, 2019. Prior period amounts have not been adjusted and continue to be reported in accordance with historical accounting under Topic 840. Menlo Park Office Space Lease We have an operating lease for our office space at 149 Commonwealth Drive, Menlo Park, California, or the Menlo Park Lease, that commenced in February 2018 and was due to expire in January 2020. On September 10, 2019, we amended this lease agreement to extend the lease term by two months to the end of March 2020. The amendment to the Menlo Park Lease is treated as a modification of the existing lease agreement, and the right-of-use asset and corresponding operating lease liability have been remeasured based on the present value of remaining lease payments over the remaining extended lease term, using the discount rate applicable as of the adoption date. Since the operating lease is a net lease, as the non-lease components (i.e., common area maintenance) are paid separately from rent based on actual costs incurred, such non-lease components were not included in the right-of-use asset and liability and are reflected as an expense in the period incurred. The components of lease costs included in operating expenses on our condensed statements of operations were as follows:
|  | Three Months Ended |  |  | Nine Months Ended |
(In thousands) |  | September 30, 2019 |  |  | September 30, 2019 |
Operating lease costs |  | $ | 176 |  |  | $ | 524 |
Variable lease costs (1) |  |  | 2 |  |  |  | 10 |
Total lease costs |  | $ | 178 |  |  | $ | 534 |
| (1) | Variable lease costs represent non-lease components, such as common area maintenance charges.
The operating lease liability on the condensed balance sheet reflects the present value of the remaining lease payments for the Menlo Park Lease over the remaining extended lease term. In determining the present value of lease payments, we applied our incremental borrowing rate based on the information available as of the January 1, 2019 adoption date. As of September 30, 2019, future minimum payments under the Menlo Park Lease were as follows (in thousands):
2019 |  | $ | 175 |
2020 |  |  | 179 |
Total lease payments |  |  | 354 |
Less: imputed interest |  |  | (5 | )
Total |  | $ | 349 |
As of September 30, 2019, the weighted average remaining lease term is 5 months and the weighted average discount rate used to determine the operating lease liability was 5%. New Jersey Office Space Lease In April 2019, we entered into an operating lease agreement for office space located at 3 Sylvan Way, Parsippany, New Jersey, or the New Jersey Lease. The initial term of the New Jersey Lease is 11 years with an option to extend for an additional five years and a one-time option to terminate the New Jersey Lease without cause as of the 103rd month anniversary of the commencement date of the lease. The New Jersey Lease term commences upon the earlier of the date of completion of the construction work or the date upon which we occupy and use the space for its intended purpose, which occurred on October 1, 2019. For further discussion of the commencement of the New Jersey Lease, see Note 6 on Subsequent Events. The aggregate minimum future lease payments for the initial lease term is approximately $3,696,000, net of a seven-month rent abatement period. Under the New Jersey Lease, we are also obligated to pay certain variable expenses separately from the base rent, including electricity and common area maintenance. Such costs will be expensed in the period they are incurred. We have performed an evaluation of our other contracts with vendors in accordance with Topic 842 and have determined that, except for the operating leases described above and nominal financing leases for office equipment, none of our contracts contain a lease.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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