14. Commitments and Contingencies

Contractual obligations and commitments as of June 30, 2017, consisting of future minimum lease payments under the Company’s Stamford and Shelton leases, were as follows:


	Payment Due for the Year Ending December 31,
	2017		2018		2019		2020		2021		Thereafter		Total
Stamford operating lease	$	392	$	1,093	$	1,217	$	1,241	$	1,266	$	2,348	$	7,557
Shelton operating lease		272		—		—		—		—		—		272

	$	664	$	1,093	$	1,217	$	1,241	$	1,266	$	2,348	$	7,829

Stamford Operating Lease

In December 2015, the Company entered into a lease agreement, or the Stamford Lease, with Four Stamford Plaza Owner LLC, or the Landlord, for office space in Stamford, Connecticut, or the Premises, for the purpose of relocating its headquarters. The initial term of the Stamford Lease commenced in May 2016, or the Commencement Date, and ends in November 2023. The Stamford Lease requires monthly lease payments, including rent escalations and rent holidays, during the initial lease term. The Company began to make rental payments from the Commencement Date. The Company records monthly rent expense on a straight-line basis from March 2016, upon taking possession of the Premises, through October 2023. As of June 30, 2017 and December 31, 2016, the balance of deferred lease obligation, representing the difference between cash rent paid and straight-line rent expense, was $648 and $583, respectively. The Stamford Lease is renewable for one five-year term.

As of the Commencement Date, the Stamford landlord had made tenant improvements of approximately $1,094 to the leased premises. Such amount was included in Property and equipment, net and in Deferred lease obligation on the Company’s Balance Sheet on that date. 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. As of June 30, 2017 and December 31, 2016, the balance of Deferred lease obligation related to tenant improvements was $915 and $987, respectively.

In connection with the signing of the Stamford Lease, the Company entered into a standby letter of credit agreement, which serves as a security deposit for the Premises. The standby letter of credit is automatically renewed annually through November 2023. This standby letter of credit is secured with restricted cash in a money market account (refer to Note 6, Restricted Cash).

Shelton Operating Lease

In May 2016, the Company relocated its headquarters to Stamford, Connecticut and vacated its former operating facility in Shelton, Connecticut, although the Company continues to lease its former Shelton operating facility under an operating lease, or the Shelton Lease, which commenced in 2007 and terminates on October 13, 2017.

The Shelton Lease, requires monthly lease payments through its term. The Company recorded monthly rent expense associated with the Shelton Lease on a straight-line basis from inception of the Shelton Lease through May 2016. 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 R&D 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 Lease without economic benefit to the Company. As of June 30, 2017, the carrying amount of the liability of $276, which includes the $272 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 Balance Sheet.

A reconciliation of the balances of the accrued Shelton Lease cease-use liability for the three and six months ended June 30, 2017 and 2016 is as follows:


Three Months Ended June 30,
2017				2016
Balance April 1, 2017	$	515		Balance, April 1, 2016	$	—
Charges		—		Charges		1,312
Rental payments		(247	)	Rental payments		(80	)
Interest accretion		8		Interest accretion		—

Balance June 30, 2017	$	276		Balance June 30, 2016	$	1,232


Six Months Ended June 30,
2017				2016
Balance, January 1, 2017	$	756		Balance January 1, 2016	$	—
Charges		—		Charges		1,312
Rental payments		(494	)	Rental payments		(80	)
Interest accretion		14		Interest accretion		—

Balance June 30, 2017	$	276		Balance June 30, 2016	$	1,232

In conjunction with the signing of the Shelton Lease, the Company entered into a standby letter of credit agreement, which expires on October 13, 2017, as a security deposit for the premises. As of June 30, 2017 and December 31, 2016, the balance of the letter of credit was $700, which is secured with restricted cash (refer to Note 6, Restricted Cash).

The Company accelerated the amortization of the Shelton leasehold improvements from the date of signing of the Stamford Lease in December 2015 through the date that the Company vacated the Shelton facility in May 2016. Additional amortization expense as a result of such acceleration amounted to $359 and $899 (additional net loss per share of $0.01 and $0.03) for the three and six months ended June 30, 2016, respectively.