The Company has lease contracts solely for office space with lease terms of between two and five years. Generally, the Company is restricted from assigning and subleasing the leased assets. There are a number of lease contracts that include extension and termination options and variable lease payments, which are further discussed below.

Refer to Note 9 for the carrying amounts of right of use assets recognized and the movements during the period.

The carrying amounts of lease liabilities and the movements during the period are as follows:

	2020			2019
	(in thousands)
	£			£
At January 1		806			434
Additions		—			548
Re-measurement of liability		115			2
Accretion of interest		26			21
Payments		(297	)		(197	)
Effect of foreign currency exchange differences		(5	)		(2	)
At December 31		645			806

Classified as:
Current		278			268
Non-current		367			538
		645			806

	2020			2019
	(in thousands)
	£			£
Contractual undiscounted payments
Not later than 1 year		296			293
Later than 1 year and not later than 3 years		307			400
Later than 3 years and not later than 5 years		74			167
Total contractual undiscounted payments		677			860
Less: effect of discounting		(32	)		(54	)
Discounted lease liabilities		645			806

The following are the amounts recognized in the statements of operations with respect to lease contracts:

	2020		2019		2018
	(in thousands)
	£		£		£
Depreciation expense of right of use assets under IFRS 16		268		193		—
Interest expense on lease liabilities (included in administrative expenses) under IFRS 16		26		21		—
Operating lease expense under IAS 17		—		—		150
Total amount recognized in statements of operations		294		214		150

The Company had total net cash outflows for leases of £0.3 million in 2020 (2019: £0.2 million). The Company also had non-cash additions to right of use assets and lease liabilities of £nil in 2020 (2019: £0.5 million). The Company renewed one lease contract in 2020, which resulted in a re-measurement of the right of use asset and lease liability of £0.1 million.

The Company has one lease contract with variable payments where the lease costs after the first year of the lease are increased based upon a consumer price index. All other lease contracts have fixed payments.

The Company has a number of lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased asset portfolio and align it with the Company’s business needs. None of the termination options have been exercised or are expected to be exercised. All of the extension options require a market rental review and the lease cost for the extension period will typically be set at the higher of either the current lease cost or the open market lease cost.

Based upon the current lease cost, the undiscounted future rental payments of potential extension options that are not included in the lease liability are as follows:

	2020		2019
	(in thousands)
	£		£
Extension options not expected to be exercised
Not later than 5 years		591		351
Later than 5 years		387		627
Total		978		978