At the inception of a contractual arrangement, the Company determines whether the contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. If both criteria are met, the Company calculates the associated lease liability and corresponding right-of-use asset upon lease commencement using a discount rate based on the rate implicit in the lease or an incremental borrowing rate commensurate with the term of the lease.

The Company records lease liabilities within current liabilities or long-term liabilities based upon the length of time associated with the lease payments. The Company records its operating lease right-of-use assets as long-term assets. Right-of-use assets for financing leases are recorded within property and equipment, net in the Balance Sheet. Leases with an initial term of 12 months or less are not recorded on the Balance Sheet. Instead, the Company recognizes lease expense for these leases on a straight-line basis over the lease term. In connection with certain operating leases, the Company has security deposits recorded and maintained as restricted cash totaling $40 thousand as of December 31, 2019.

The Company leases laboratory, office and storage facilities in San Antonio, Texas, under operating lease agreements that expire in 2028. The Company also leases certain office space in Austin, Texas under a month-to-month operating lease agreement. In addition, the Company leases certain equipment under various operating and finance leases. The lease agreements generally provide for periodic rent increases, and renewal and termination options. The Company’s lease agreements do not contain any material variable lease payments, residual value guarantees or material restrictive covenants.

Certain leases require the Company to pay taxes, insurance, and maintenance. Payments for the transfer of goods or services such as common area maintenance and utilities represent non-lease components. The Company elected the package of practical expedients and therefore does not separate non-lease components from lease components.

The table below summarizes the Company’s lease liabilities and corresponding right-of-use assets (in thousands, except years and rates):

	December 31, 2019
Assets
Operating	$	781
Financing		134
Total leased assets	$	915

Liabilities
Current:
Operating	$	147
Financing		120
Noncurrent:
Operating	$	646
Financing		8
Total lease liabilities	$	921
Weighted-average remaining lease term (years) - operating leases		6.89
Weighted-average remaining lease term (years) - finance leases		1.08
Weighted-average discount rate - operating leases		7.93	%
Weighted-average discount rate - finance leases		5.00	%

The table below summarizes the Company’s lease costs from its consolidated statements of operations, and cash payments from its consolidated statements of cash flows during year ended December 31, 2019.

	Year ended December 31, 2019
Lease expense:
Operating lease expense	$	225
Finance lease expense:
Depreciation of right-of-use assets		116
Interest expense on lease liabilities		9
Total lease expense	$	350

Cash payment information:
Operating cash used for operating leases	$	213
Financing cash used for financing leases		131
Total cash paid for amounts included in the measurement of lease liabilities	$	344

Total rent expenses for the year ended December 31, 2019 was $0.7 million, which includes leases in the table above, month-to-month operating leases, and common area maintenance charges.

The Company’s future minimum annual lease payments under operating and financing leases at December 31, 2019 are as follows (in thousands):

	Financing Leases			Operating Leases
2020		123			211
2021		7			183
2022		—			123
2023		—			100
Thereafter		—			447
Total minimum lease payments	$	130		$	1,064
Less: amount representing interest		(2	)		(271	)
Present value of obligations under leases		128			793
Less: current portion		(120	)		(147	)
Noncurrent lease obligations	$	8		$	646

Prior to December 2019, the Company also maintained office space for its former corporate headquarters in San Diego, California (the “Lease”). The initial term of the Lease is 63 months and may be extended upon mutual agreement. In connection with a restructuring announced in September 2017, the Company began negotiations with the landlord and in February 2018, announced a buy-out of its obligations with the Lease of approximately $0.6 million, included in the general and administrative expenses.

As of December 31, 2018, future minimum lease payments under the Company’s lease obligations under ASC 840 were as follows:

Years Ending December 31,	Obligation
2019	$	1,282
2020		638
2021		638
2022		192
Total	$	2,750

Rent expenses, which includes common area maintenance, for the year ended December 31, 2018 was $1.9 million.

We have entered into agreements with various research organizations for pre-clinical and clinical development studies, which have provisions for cancellation. Under the terms of these agreements, the vendors provide a variety of services including conducting research, recruiting and enrolling patients, monitoring studies and data analysis. Payments under these agreements typically include fees for services and reimbursement of expenses. The timing of payments due under these agreements is estimated based on current study progress. As of December 31, 2019, we have clinical research study obligations of $0.9 million, which is expected to be paid within a year.

We are subject to various claims and contingencies related to legal proceedings. Due to their nature, such legal proceedings involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management assesses the probability of loss for such contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate.

On July 25, 2019, Tap Advisors LLC (“Tap”) filed suit against the Company in the Supreme Court of the State of New York, County of New York, alleging the Company breached an agreement made in 2017, whereby Tap would provide certain financial advisory services to the Company. Tap sought to recover fees of approximately $3.7 million (plus attorneys’ fees) that allegedly had not been paid by the Company related to the sale of its Cell Therapy business in April 2019. In December 2019, the Company settled the Tap litigation with cash payment of $0.7 million, which is included in the loss from discontinued operations for the year ended December 31, 2019.