Leases

3 Months Ended

Mar. 31, 2019

Leases The Company has five non-cancelable operating leases for manufacturing, laboratory and office space in Rockville, Maryland and one non-cancelable operating lease for laboratory and office space in Brisbane, California. A portion of the space under one of these leases is subleased to a third party. All of these leases include one or more options to renew, with those

renewal periods ranging from five to 14 years. At March 31, 2019, the Company's weighted-average remaining lease term relating to its operating leases is 7 years, with a weighted-average discount rate of 9.9%.

Upon adoption of ASC 842 on January 1, 2019, it was not reasonably certain that the Company would extend any of the operating leases, therefore the options to extend the lease terms were not recognized as part of the ROU assets or lease liabilities. During the three months ended March 31, 2019, the Company determined that it would exercise the option to extend one lease for an additional five years, therefore the Company remeasured the lease liability and adjusted the carrying amount of the ROU asset related to this lease. The Company made cash payments of $1.6 million for operating leases during the three months ended March 31, 2019. As of March 31, 2019, the Company’s ROU assets were valued at $17.7 million and are included in Other assets on the consolidated balance sheet.

The components of lease cost for the three months ended March 31, 2019 were as follows (in thousands):


Operating lease cost	$	1,341
Variable lease cost	236
Sublease income	(235)
Net lease cost	$	1,342

As of March 31, 2019, the maturities of our operating lease liabilities were as follows (in thousands):


Remainder of 2019	$	4,797
2020	5,634
2021	5,322
2022	5,468
2023	5,279
2024	4,293
Thereafter	10,081
Total lease payments	40,874
Present value adjustment	(12,097)
Lease liabilities	$	28,777