Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Lease agreements

Synergy's corporate offices in New York are leased through March 2022. The total monthly rent on this space is approximately $80,000 on straight line basis, prospectively.

Synergy also maintained a research and development laboratory and several offices in the Pennsylvania Biotechnology Center in Doylestown, Pennsylvania under a lease that expired on January 31, 2017, at a monthly rate of approximately $3,700. Synergy expects to transition this operation during 2017 to other locations or contract research organizations.

In addition, we lease office space for commercial and technical operations in Wayne, Pennsylvania under a lease through November 30, 2017, at a monthly rate of approximately $10,000.

Rent expense was $1,365,000, $909,000 and $651,000 for the years ended December 31, 2016, 2015 and 2014 respectively.

Change in Control and Severance Agreements

The Company has agreements with employees which provide for payouts in the event that the Company consummates a change in control. At December 31, 2016, the amount of compensation for which the Company would be liable as a result of this event is approximately $8,400,000, as set forth in the agreements. These employees are also entitled to full vesting of their outstanding equity awards. As of December 31, 2016 and 2015, no amounts have been accrued.

Contractual obligations and commitments

The following table is a summary of contractual obligations for the periods indicated that existed as of December 31, 2016.



($ in thousands)	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 years
Long term debt obligations⁽¹⁾	$	28,665	$	1,755	$	26,910	$	—	$	—
Operating leases	5,896		1,065		3,303		1,528		—
Purchase obligations—principally employment and consulting services⁽²⁾	7,285		3,561		3,724		—		—
Purchase obligations—major vendors⁽³⁾	138,619		131,381		7,238		—		—

Total obligations	$	180,465	$	137,762	$	41,175	$	1,528	$	—

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(1)	Represents Senior Convertible Notes, including interest. See Note 4 to our Consolidated Financial Statements.


(2)	Represents salary, bonus, and benefits for employment and consulting agreements with remaining terms greater than one year.


(3)	Represents amounts that will become due upon future delivery of supplies, drug substance and test results from various suppliers, under open purchase orders. Generally these purchase orders represents commitments to suppliers with cancellation provisions that allow early termination with notice, penalties and payment of certain non-cancelable vendor commitments.

Litigation

There are currently no pending legal proceedings to which Synergy or any of its subsidiaries is a party, or of which any of its property is the subject, that the Company believes will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results. As far as the Company is aware, no governmental authority is contemplating any such proceeding.