Leases

9 Months Ended

Sep. 30, 2019

The Company has non-cancelable operating leases for manufacturing, laboratory and office space in Rockville, Maryland and a 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 September 30, 2019, the Company's weighted-average remaining lease term relating to its operating leases is seven 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 its operating leases, therefore the options to extend the lease terms were not recognized as part of the ROU assets or lease liabilities. During the nine months ended September 30, 2019, the Company exercised the options to extend two leases for an additional five years each, therefore the Company remeasured the lease liability and adjusted the carrying amount of the ROU asset related to these leases. The Company made cash payments of $4.8 million for operating leases during the nine months ended September 30, 2019. As of September 30, 2019, the Company’s ROU assets were valued at $20.9 million and are included in Other assets on the consolidated balance sheet.

The components of lease cost for the nine months ended September 30, 2019 were as follows (in thousands):


Operating lease cost	$	4,080
Variable lease cost	1,100
Sublease income	(706)
Net lease cost	$	4,474

As of September 30, 2019, the maturities of our operating lease liabilities were as follows (in thousands):


Remainder of 2019	$	1,616
2020	5,928
2021	6,537
2022	6,720
2023	6,568
2024	5,621
Thereafter	11,098
Total lease payments	44,088
Present value adjustment	(12,550)
Lease liabilities	$	31,538