LEASE COMMITMENTS

3 Months Ended

Mar. 31, 2018

LEASE COMMITMENTS

LEASE COMMITMENTS

12. 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 March 31, 2018 and 2017, the Company recorded, in each period, expense associated with this lease of $0.5 million. After the lease amendment, future minimum rental payments on this lease for the next five years are as follows: 2018— $1.2 million (from April 1, 2018 to December 31, 2018), 2019— $1.5 million, 2020— $1.7 million, 2021—$2.2 million, 2022—$2.2 million and thereafter—$6.0 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 both March 31, 2018 and December 31, 2017, the Company had an outstanding letter of credit of $1.4 million, 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 March 31, 2018 and December 31, 2017.