Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

13. Commitments and Contingencies

The Company has concurrent leases for office and lab space that extend through April 2020. The Company may elect to extend the term of the leases for an additional five-year term. The leases provide for a tenant improvement allowance of approximately $2.1 million in the aggregate. During the three months ended September 30, 2017, none of the allowance was utilized. During the nine months ended September 30, 2017, $79,000 of the allowance was utilized. During the three and nine months ended September 30, 2016, none of the allowance was utilized. As of September 30, 2017, $0.4 million remains available for tenant improvements.

Rent expense for the leased facilities and leased vehicles for the three and nine months ended September 30, 2017 was $0.8 million and $1.9 million, respectively. Rent expense for the leased facilities and leased vehicles for the three and nine months ended September 30, 2016 was approximately $0.7 million and $2.0 million, respectively.

Future minimum lease payments under non-cancelable operating leases as of September 30, 2017 are as follows, in thousands, unaudited:

Year ending December 31:

2017 (remaining)	739
2018	1,487
2019	1,344
Thereafter	454

	$	4,024

The Company has obtained exclusive licenses from third parties for proprietary rights to support the product candidates in the Company’s psychiatry portfolio. Under license agreements with Afecta Pharmaceuticals, Inc. (Afecta), the Company has exclusive worldwide rights to selected product candidates, including an exclusive license to SPN-810. The Company does not owe any future milestone payments for SPN-810. The Company is obligated to pay royalties to Afecta as a low single digit percentage of worldwide net product sales.

The Company has also entered into a purchase and sale agreement with Rune HealthCare Limited (Rune), where the Company obtained the exclusive worldwide rights to a product concept from Rune. There are no future milestone payments due to Rune under this agreement. If the Company receives approval to market and sell any products based on the Rune product concept for SPN-809, the Company is obligated to pay royalties to Rune as a low single digit percentage of worldwide net product sales.