LEASE COMMITMENTS

6 Months Ended

Jun. 30, 2017

LEASE COMMITMENTS

LEASE COMMITMENTS

13. LEASE COMMITMENTS

In July 2015, the Company amended its office lease to, among other things, extend the lease term for an additional five year period commencing on October 1, 2020, at a rate of $0.2 million per month. During the three months ended June 30, 2017 and 2016, the Company recorded expense associated with this lease of $0.5 million and $0.5 million, respectively. During the six months ended June 30, 2017 and 2016, the Company recorded expense associated with this lease of $1.0 million and $1.0 million, respectively. After the lease amendment, future minimum rental payments on this lease for the next five years are as follows: 2017— $0.8 million (from July 1, 2017 to December 31, 2017), 2018— $1.5 million, 2019— $1.5 million, 2020—$1.7 million, 2021—$2.2 million and thereafter—$8.2 million.

On June 30, 2015, the Company increased its letter of credit and related cash collateral in anticipation of the extension of its office lease. As of June 30, 2017 and December 31, 2016, the Company had an outstanding letter of credit of $1.4 million, respectively, as required under the terms of its office lease. This letter of credit is secured by cash placed in a restricted account amounting to $1.5 million as of June 30, 2017 and December 31, 2016.