Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

14. Commitments and Contingencies

Contractual obligations and commitments as of September 30, 2016 were as follows:

	Payment Due for the Year Ending December 31,
	2016		2017		2018		2019		2020		Thereafter		Total
Stamford operating lease	$	192	$	875	$	1,093	$	1,217	$	1,241	$	3,650	$	8,268
Shelton operating lease		232		740		—		—		—		—		972
	$	425	$	1,615	$	1,093	$	1,217	$	1,241	$	3,650	$	9,241

In May 2016, the Company moved its headquarters to Stamford, Connecticut, where it leases office space under an operating lease with a term through October 2023 (See Note 21 of Notes to Financial Statements, Commitments and Contingencies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015). As of September 30, 2016, the Stamford landlord had made tenant improvements of approximately $1,094 to the leased premises. Such amount is included in Property and equipment, net and in Deferred lease obligation on the Company’s Condensed Balance Sheet. The portion of Deferred lease obligation that is related to tenant improvements is being amortized as a reduction to rent expense over the same term as rent expense. During the three and nine months ended September 30, 2016, the Company amortized $36 and $71, respectively, of Deferred lease obligation related to tenant improvements.

As of September 30, 2016, the Company continues to lease its former operating facility located in Shelton, Connecticut, which has a term through October 2017 (See Note 21 of Notes to Financial Statements, Commitments and Contingencies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015). The Company accelerated the amortization of the Shelton leasehold improvements through May 2016, the date the Company moved from the Shelton facility, or cease-use date, at which time the net book value of those leasehold improvements was zero. Acceleration of amortization of the Shelton leasehold improvements resulted in $899 of additional amortization expense (additional net loss per share of $0.03) for the nine months ended September 30, 2016.

In addition, in accordance with the accounting guidance in ASC 420-10-25-13 regarding exit or disposal cost obligations, as of May 2016, the Company recorded rent expense, within Research and development expense and General and administrative expense, and accrued a liability of $1,312, which represents the fair value of costs that will continue to be incurred during the remaining term of the Shelton operating lease without economic benefit to the Company. As of September 30, 2016, the carrying amount of the liability of $998, which includes the $972 of minimum rental payments in the table above, together with common area maintenance charges, was included in Accounts payable and accrued expenses on the Company’s Condensed Balance Sheet. At the cease-use date, the Company also wrote off the balance of Deferred lease obligation of $429 related to the Shelton lease.

A reconciliation of the balances of the accrued Shelton lease cease-use liability for the nine months ended September 30, 2016 is as follows:

Balance, January 1, 2016	$	—
Additional accruals		1,312
Rental payments		(314	)
Balance, September 30, 2016	$	998