We lease certain office space under a non-cancelable operating lease. This lease does have significant rent escalation holidays, concessions, leasehold improvement incentives or other build-out clauses. Further this lease does contain contingent rent provisions. This lease terminates on and we do have an option to renew. This lease does include both lease (e.g., fixed rent) and non-lease components (e.g., common-area and other maintenance costs). The non-lease components are deemed to be executory costs and are therefore excluded from the minimum lease payments used to determine the present value of the operating lease obligation and related right-of-use asset.

 

This lease does provide an implicit rate and, due to the lack of a commercially salable product, we are generally considered unable to obtain commercial credit. Therefore, we estimated our incremental borrowing rate to be considering the quoted rates for the lowest investment-grade debt and the interest rates implicit in recent financing leases. We used our estimated incremental borrowing rate and other information available at the lease commencement date in determining the present value of the lease payments.

 

Our operating lease cost and variable lease costs were and respectively, for the months ended Variable lease costs consist primarily of common area maintenance costs, insurance and taxes which are paid based upon actual costs incurred by the lessor.

 

Maturities of our operating lease obligation are as follows as of in thousands):

 

2021			51
2022			46
Total lease payments		$	97
Less interest portion			(6	)
Present value of lease obligation		$	91