Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Note 8. Commitments and Contingencies

In March 2017, the Company entered into a lease agreement for office and laboratory space located in Newark, California. The Company relocated its operations to the new facility in May 2017. The Company provided the landlord with a $450,000 letter of credit collateralized by restricted cash as security deposit for the lease, which expires in May 2024. The Company is entitled to tenant improvement allowances of approximately $469,000, any unused portion of which expires in December 2018. The Company records tenant improvement allowances as deferred rent when funds are received and associated capital expenditures as leasehold improvements that will be amortized over the shorter of their useful life or the remaining term of the lease.

The following table summarizes the Company’s minimum lease payments related to the Newark facility as of September 30, 2018 (in thousands):


Year Ending December 31:	Amount
2018 (remaining three months)	$	477
2019		1,941
2020		2,000
2021		2,060
2022		2,121
Thereafter		3,106
Total	$	11,705