The New Jersey Lease commenced on October 1, 2019, upon our control of the office space on that date. For further discussion of the New Jersey Lease, see Note 4 on Operating Leases. Based on the initial term of the New Jersey Lease of 11 years, the right-of-use asset and corresponding operating lease liability is estimated to be approximately $2,400,000, which represents the present value of lease payments over the initial lease term, using an incremental borrowing rate of 8% based on information available as of October 1, 2019. Future minimum operating lease payments as of October 1, 2019 for the New Jersey Lease are as follows (in thousands):

2019	$	27
2020		188
2021		327
2022		334
2023		340
After 2023		2,480
Total lease payments	$	3,696

In October 2019, we entered into an operating lease agreement for office space located at 919 East Hillsdale Boulevard, Foster City, California, or the Foster City Lease. The initial term of the Foster City Lease is 87 months with an option to extend for an additional five years. We have not yet occupied the space as it is being renovated for our use. The Foster City 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. The purpose of the Foster City Lease is to replace our current leased premises at 149 Commonwealth Drive, Menlo Park, California. For further discussion of the Menlo Park Lease, see Note 4 on Operating Leases.

Since we do not yet have control of the office space located in Foster City, as defined by Topic 842, during the construction period and do not expect to gain control of the space until on or near the construction completion date, we will not record a right-of-use asset and corresponding lease liability until we occupy the space, which we expect to occur by the end of the first quarter of 2020. Upon the commencement of the Foster City Lease, the aggregate minimum future lease payments for the initial lease term is approximately $4,400,000, net of a three-month rent abatement period, and subject to scheduled annual increases. Under the Foster City Lease, we are also obligated to pay certain variable expenses separately from the base rent, including taxes and common area maintenance. Such costs will be expensed in the period they are incurred.

In October 2019, we sold an aggregate of 6,908,525 shares of our common stock pursuant to the 2018 Sales Agreement, resulting in net cash proceeds to us of approximately $10,232,000, after deducting sales commissions and other offering expenses payable by us. For further discussion of the 2018 Sales Agreement, see Note 5 on Stockholders’ Equity.