The Company has one operating lease pertaining to 17,698 square feet of corporate office space in Newark, California pursuant to a lease agreement that commenced January 16, 2014 and was amended on April 16, 2018. At March 31, 2020 the Company’s lease portfolio had a weighted average remaining term of 3.8 years, with an option to extend for an additional 5 years. The lease requires monthly lease payments that are subject to annual increases throughout the lease term. The optional period has not been considered in the determination of the assets or lease liabilities associated with this lease as the Company did not consider it reasonably certain it would exercise the option.

For the three months ended March 31, 2020 and 2019, the Company incurred $0.1 million and $0.1 million, respectively, of lease costs included in operating expenses in the condensed consolidated statements of income and comprehensive income in relation to its operating lease, a portion of which was variable rent expense and not included within the measurement of the Company’s operating ROU assets and lease liabilities. The variable rent expense consists primarily of the Company’s proportionate share of operating expenses, property taxes, and insurance and is classified as lease expense due to the Company’s election to not separate lease and components. Short-term lease costs were not material. At March 31, 2020, the Company’s operating lease asset totaled $0.2 million, and the operating lease liability totaled $2.1 million. The short term portion of the operating lease liability was $0.4 million and is contained within other accrued liabilities on the balance sheet, with the remaining $1.6 million liability reported on the balance sheet as long-term portion of operating lease liability