Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies.

Commitments and Contingencies

9. Commitments and Contingencies

Leases

In October 2014, we entered into a five-year operating lease agreement for office space in Radnor, Pennsylvania.  Rent payments under this lease commence May 1, 2015, with payment amounts escalating each May 1 thereafter through the end of the lease term.  In February 2013, we entered into a two-year operating lease agreement for office space in New Haven, Connecticut and pay a flat rent per month over the term of the lease which ends in June 2015. Prior to that and through April 2013, we leased a facility in Branford, Connecticut. Rent expense under these operating leases, in thousands, was $50 and $34 for the years ended 2014 and 2013, respectively.  All leases are non-cancelable.

Our annual future minimum lease payments under these leases are as follows (in thousands):

	Operating  Lease  Payments
2015	$	100
2016	130
2017	132
2018	135
2019	138
Thereafter	46
Total minimum lease payments	$	681

Employee Benefit Plan

We maintain a Section 401(k) retirement plan for all employees. Employees can contribute up to 50% of their eligible pay, subject to maximum amounts allowed under law. We may make discretionary profit sharing contributions, which vest over a period of four years from each employee’s commencement of employment with us. We have not made any discretionary contributions.

License Agreement

We are obligated to pay royalties pursuant to a license agreement with Purdue as a percentage of net product sales for direct licensed products, such as ganaxolone. The obligation to pay royalties expires, on a country-by-country basis, 10 years from the first commercial sale of a licensed product in each country. The agreement also requires that we pay Purdue a percentage of the non-royalty consideration that we receive from a sublicensee and a percentage of milestone payments for indications other than seizure disorders and vascular migraine headaches not associated with mood disorders. Under the license agreement, we are committed to use commercially reasonable efforts to develop and commercialize at least one licensed product.