6 . Commitments and Contingencies Leases In August 2018, the Company entered into a lease agreement for the office and laboratory space in South San Francisco, California (the Cove Lease). The lease commencement date was July 1, 2019 at which time the Company took occupancy. T he Cove Lease includes an option to renew, exercisable at the Companys sole discretion, with a renewal term for an additional period of eight years. As of March 31, 2020, the Company has not determined whether it will exercise its option to extend the lease term. Therefore, the operating lease assets and lease liabilities only contemplate the initial lease terms. The lease qualifies as an operating lease. The following table summarizes the presentation in the Companys condensed balance sheets of its operating lease (in thousands): As of March 31, 2020 Assets: Operating lease right-of-use assets $ 6,917 Liabilities Operating lease liabilities $ 1,264 Operating lease liabilities, net of current portion 13,394 Total operating lease liabilities $ 14,658 The Company incurred $0.2 million and $0.1 million in variable lease costs for the three months ended March 31, 2020 and March 31, 2019, respectively. F uture minimum lease payments under the Cove Lease as of March 31, 2020 are as follows (in thousands): As of March 31, 2020 Operating Lease Commitments 2020 $ 1,874 2021 2,566 2022 2,647 2023 2,731 2024 2,817 Thereafter 7,433 Total future minimum lease payments 20,068 Less: Present value adjustment for minimum lease commitments (5,410 ) Total $ 14,658 As of March 31, 2020, the weighted average remaining lease term was 7.25 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 8.95%. Rent expense was $0.6 million and $0.7 million for the three months ended March 31, 2020 and March 31, 2019, respectively. Amortization of the right-of-use lease assets was $0.1 million and $0.3 million for the three months ended March 31, 2020 and March 31, 2019, respectively. Indemnification In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company currently has directors and officers insurance.