6. Commitments and Contingencies Leases In February 2019, the Company entered into a lease agreement for new office and laboratory space in South San Francisco, California. The term of the lease agreement commenced in May 2019. The lease has an initial term from occupancy of approximately ten years ending on December 31, 2029 with an option to extend the term for an additional eight years at then-market rental rates. The total base rent payment escalates annually based on a fixed percentage beginning from the 13 th month of the lease agreement. The Company will also be responsible for the operating expenses and real estate taxes allocated to the building and common areas. Pursuant to the lease agreement, the landlord provided the Company with a tenant improvement allowance of $10.7 million, which was included in deferred rent and leasehold improvements on the balance sheet at December 31, 2019. In connection with the execution of the lease agreement, the Company delivered a letter of credit of approximately $0.9 million to the landlord. In May 2016, the Company executed a non-cancellable lease agreement for office and laboratory space in Brisbane, California which commenced in May 2016 and continues through October 2022. The lease agreement includes an escalation clause for increased rent and a renewal provision allowing the Company to extend this lease for an additional four years by giving the landlord written notice of the election to exercise the option at least fifteen months prior to the original expiration of the lease term. The lease provides for monthly base rent amounts escalating over the term of the lease and the lessor provided the Company a $3.9 million tenant improvement allowance to complete the laboratory and office renovation which was recorded as deferred rent liability and leasehold improvements within property and equipment, net. In May 2017, the Company entered into an amendment to expand the leased space and received a three-month rent holiday for the expanded space. The Companys operating leases include various covenants, indemnities, defaults, termination rights, security deposits and other provisions customary for lease transactions of this nature. The following table summarizes the components of lease expense, which are included in operating expenses in the Companys condensed statements of operations and comprehensive loss (in thousands): Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Operating lease cost $ 1,140 $ 3,584 Variable lease cost 363 1,004 Impairment of operating lease right-of-use asset  1,157 Total lease cost $ 1,503 $ 5,745 Variable lease payments include amounts relating to common area maintenance, real estate taxes and insurance and are recognized in the condensed statements of operations and comprehensive loss as incurred. Rent expense for the nine months ended September 30, 2019 was $3.0 million. The following table summarizes supplemental information related to leases (in thousands): Nine Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,172 Weighted-average remaining lease term (years) Operating leases 8.7 Weighted-average discount rate (percentage) Operating leases 5.8 % The following table summarizes the maturities of lease liabilities as of September 30, 2020 (in thousands): Amount 2020 (remaining 3 months) $ 1,626 2021 6,653 2022 6,283 2023 4,810 2024 4,964 Thereafter 27,302 Total future minimum lease payments 51,638 Less: Amount representing interest (11,591 ) Present value of future minimum lease payments 40,047 Less: Current portion of operating lease liability (4,415 ) Noncurrent portion of operating lease liability $ 35,632 The cumulative effect on the Companys condensed balance sheets at January 1, 2020 from the adoption of Topic 842 was as follows (in thousands): December 31, 2019 Topic 842 Adjustments January 1, 2020 Operating lease right-of-use assets $  $ 27,174 $ 27,174 Accrued and other current liabilities 4,995 (1,970 ) 3,025 Operating lease liabilities, current portion  3,455 3,455 Deferred rent, net of current portion 13,298 (13,298 )  Operating lease liabilities, net of current portion  38,988 38,988 In February 2020, the Company completed its move into the new office and laboratory space in South San Francisco, exited its previous offices and laboratory space in Brisbane, California, and began to actively market this space for sublease. Concurrent with this move and in consideration of real estate market conditions, in particular due to the COVID-19 pandemic in March 2020, the Company identified indicators of impairment in the related asset group, which included the leased ROU asset and related leasehold improvements associated with the lease. The Company subsequently evaluated and compared the net book value of the asset group to the estimated undiscounted future cash flows over the remaining term of the lease and concluded that an impairment had occurred. The discounted estimated future cash flows include estimates of sublease rentals through the end of the lease term , which ends on O ctober 31, 2022 , utilizing a discount rate of 3.5 % based on the Companys estimated incremental borrowing rate . The estimated discounted cash flows were compared to the net book value of the ROU asset and leasehold improvements resulting in an impairment loss of $ 2.2 million. Th is impairment loss was allocated proportionally to the right-of-use asset of $ 1.2 million and leasehold improvements of $ 1.0 million and recorded in operating expense in the condensed statements of operations and comprehensive loss for the nine months ended September 30, 2020 . After recording the impairment, the remaining balance of the ROU asset and leasehold improvements was $ 1.8 million and $ 1.6 million, respectively. The Company continues to actively market this space for sublease. Additional impairments could be realized if the Companys sublease assumptions are further impacted by real estate market conditions, including potentially as a result of the COVID-19 pandemic. Indemnification The Company indemnifies each of its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Companys request in such capacity, as permitted under Delaware law and in accordance with the Companys amended and restated certificate of incorporation and bylaws. The term of the indemnification period lasts as long as an officer or director may be subject to any proceeding arising out of acts or omissions of such officer or director in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds director and officer liability insurance. This insurance allows the transfer of risk associated with the Companys exposure and may enable the Company to recover a portion of any future amounts paid. The Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented.