9. Commitments and Contingencies Operating Leases In March 2015, the Company entered into an operating lease for approximately 21,488 rentable square feet of office and laboratory space in Cambridge, Massachusetts (the 2015 Lease), with a lease term commencing in August 2015 and ending in October 2020. In November 2019, the Company and its landlord agreed to terminate the 2015 Lease effective December 31, 2019. As of December 31, 2019, the 2015 Lease had terminated and all obligations relating the 2015 Lease were satisfied in full with no remaining balances as of that date . On January 8, 2019, the Company entered into a lease (the 2019 Lease) with respect to approximately 52,859 square feet of space in Cambridge, Massachusetts for a lease term commencing in January 2019 and ending in February 2030. The Company has the option to extend the lease term for one additional ten (10) year period. The 2019 Lease has escalating rent payments and the Company records rent expense on a straight-line basis over the term of the 2019 Lease, including any rent-free periods. The 2019 Lease includes certain lease incentives in the form of tenant allowances. The 2019 Lease also includes an abatement period in which the Company is not required to remit monthly rent payments until March 2020. In connection with the execution of the 2019 Lease, the Company was required to provide the landlord with a letter of credit in the amount of $3.1 million (See Note 6). The Company determined that, for purposes of applying ASC 842, the commencement date of the 2019 Lease occurred on May 1, 2019. The Company recorded a right-of-use asset and lease liability of $15.8 million using an incremental borrowing rate of 9.3%, net of tenant allowances expected to be received of $9.3 million, on the May 1, 2019 lease commencement date. The Company is amortizing the tenant allowance to offset rent expenses over the term of the 2019 Lease starting at the lease commencement date on a straight-line basis. On the Companys condensed consolidated balance sheets, the Company classified $1.3 million of the lease liability as short-term and $24.2 million of the lease liability as long-term as of March 31, 2020. The Company elected the practical expedient provided under ASC 842 and therefore has combined all lease and non-lease components when determining the right-of-use asset and lease liability for the 2019 Lease. Financing Lease In March 2019, the Company entered into an equipment lease agreement (the Equipment Lease) that has a 48-month term. At the end of the term, the Company has the right to return the leased equipment, extend the lease, or buy the equipment at the then-current fair market value of the equipment. The Company accounted for the Equipment Lease as a financing lease under ASC 842 and recorded a financing lease right-of-use asset and a corresponding financing lease liability of approximately $1.0 million at the time the Equipment Lease was executed. The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating and financing lease liabilities as of March 31, 2020 (in thousands): Operating Financing Nine months ending December 31, 2020 $ 2,792 $ 234 Year ended December 31, 2021 3,824 313 Year ended December 31, 2022 3,935 313 Year ended December 31, 2023 4,049 65 Year ended December 31, 2024 and beyond 27,709  Total minimum lease payments $ 42,309 $ 925 Less imputed interest 15,330 121 Less leasehold incentive receivable 1,448  Total lease liability $ 25,531 $ 804 The following table outlines the total lease cost for the Companys operating and financing leases as well as weighted average information for these leases as of March 31, 2020 (in thousands): Three Months Ended March 31, 2020 Lease cost: Operating lease cost $ 330 Financing lease cost: Amortization of right-of-use asset $ 65 Interest on lease liabilities 20 Total financing lease cost $ 85 Cash paid for amounts included in the measurement of liabilities: Operating cash flows from operating leases $ 714 Operating cash flows from financing lease $ 78 Other information: Three Months Ended March 31, 2020 Weighted-average remaining lease term (in years) - operating lease 9.93 Weighted-average discount rate - operating lease 9.30 % Weighted-average remaining lease term (in years) - financing lease 3.05 Weighted-average discount rate - financing lease 9.47 % Following the adoption of ASC 842, the Company has a right-of-use asset and lease liability that resulted in recording a new temporary tax difference as the Company is now recognizing right-of-use assets and related lease liabilities for the first time and those assets and liabilities have no corresponding tax basis. License Agreements TMRC Co. Ltd. In September 2015, the Company entered into an exclusive license agreement with TMRC Co. Ltd. ("TMRC") to develop and commercialize tamibarotene in North America and Europe for the treatment of cancer. This agreement was amended and restated in April 2016. In exchange for this license, the Company agreed to a non-refundable upfront payment of $1.0 million, for which $0.5 million was paid in September 2015 upon execution of the agreement, and the remaining $0.5 million was paid in May 2016. Under the agreement, the Company is also obligated to make payments upon the successful achievement of clinical and regulatory milestones totaling approximately $13.0 million per indication, defined as a distinct tumor type. In September 2016, the Company paid $1.0 million to TMRC for a development milestone achieved upon the successful dosing of the first patient in its Phase 2 clinical trial of SY-1425. In addition, the Company is obligated to pay TMRC a single-digit percentage royalty, on a country-by-country and product-by-product basis, on net product sales of SY-1425 using know-how and patents licensed from TMRC in North America and Europe for a defined royalty term. The Company also entered into a supply management agreement with TMRC under which the Company agreed to pay TMRC a fee for each kilogram of SY-1425 active pharmaceutical ingredient that is produced. The Company incurred fees of $0.3 million under this supply management agreement during the three months ended March 31, 2020, which were paid by the end of the quarter. No fees were incurred or paid under this supply management agreement during the three months ended March 31, 2019. In April 2020, the Company incurred an additional $0.5 million under the supply management agreement.