Note 10 - Commitments

Operating leases

During the second quarter 2015, the Company extended the term of its Gaithersburg, Maryland office lease, effective May 7, 2015, through January 31, 2021, with one additional five-year renewal at the Company’s election. The Company is responsible for all utilities, repairs, insurance, and taxes under this operating lease. Effective July 1, 2015, the Company further modified its lease agreement to add additional leased space to its headquarters. The Company also leases a facility in Woburn, Massachusetts under an operating lease that expires in January 2017, and provides the Company with options to extend the lease beyond the current expiration date. Additionally, the Company leases office space in Denmark; this lease is currently on a month-to-month basis. Rent expense under the Company’s facility operating leases for the years ended December 31, 2015 and 2014, was $1,027,174 and $883,155, respectively.

Capital leases

The Company leases computer equipment, office furniture, and equipment under various capital leases. The leases expire at various dates through 2020. The leases require monthly principal and interest payments. Following is a schedule by year of the estimated future minimum payments under all operating and capital leases as of December 31, 2015:

	Capital		Operating
Year ending December 31,	Leases		Leases		Total

2016	$	294,141	$	870,484	$	1,164,625
2017		204,354		633,480		837,834
2018		109,272		568,410		677,682
2019		21,266		-		21,266
2020 and thereafter		19,494		-		19,494
Total	$	648,527	$	2,072,374	$	2,720,901
Less: amount representing interest		(70,255)
Net present value of future minimum lease payments	$	578,272
Current maturities		(251,800)
Long-term maturities	$	326,472

Assets under capital leases were included in the following balance sheet categories as of December 31:

	2015		2014
Laboratory equipment	$	803,500	$	364,471
Office furniture		89,140		-
Computers		153,693		153,693
Less accumulated amortization		(402,066)		(245,030)
Capital lease assets, net	$	644,267	$	273,134

Amortization expense associated with equipment under capital leases for the years ended December 31, 2015 and 2014 was $157,036 and $122,411, respectively, and is included within depreciation and amortization expense in the consolidated statements of operations.

Registration and other shareholder rights

In connection with the Merger and the investment transactions (see Notes 4 and 5), the Company also entered into a Registration Rights Agreement with the AdvanDx stockholders receiving Merger Consideration and with Merck GHI, pursuant to which the investors were granted certain demand registration rights and piggyback registration rights in connection with subsequent registered offerings of the Company’s common stock. Merck GHI also received rights to participate on a pro-rata basis in future securities offerings by the Company.

On December 18, 2013, the Company entered into the Third Amended and Restated Investors’ Rights Agreement (the “Investors’ Rights Agreement”) with investors acquiring promissory notes convertible into shares of the Company's Series A Preferred Stock. Following the IPO, the holders of 20% or more of such shares of common stock subject to the Investors’ Rights Agreement have demand registration rights and piggyback registration rights in connection with subsequent registered offerings of the Company’s common stock.