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COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2015
Commitments And Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 12—COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Company enters into contracts that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. Further, the Company indemnifies its directors and officers who are, or were, serving at the Company’s request in such capacities. The Company’s maximum exposure under these arrangements is unknown as of June 30, 2015 and December 31, 2014. The Company does not anticipate recognizing any significant losses relating to these arrangements.

Leases

On May 9, 2013, the Company entered into a lease agreement for a 20,000 square foot facility to be used for administrative and research and development activities. The lease commenced on June 15, 2013 and has a 10-year initial term expiring on June 15, 2023. The lease also contains options for the Company to extend the lease upon its initial expiration. In connection with the lease, the Company made a one-time cash security deposit in the amount of $100,000.

On January 26, 2015, the Company entered into a lease agreement with Merritt SAB 17, LP, for the lease of approximately 18,000 square feet in Santa Monica, California. The lease has a 10-year term commencing on February 1, 2015. Upon certain conditions, the Company has two options to extend the lease each for an additional five years. The Company is required to remit base rent of $45,540 per month, which will increase at a rate of 3% per year. The Company expects to use the newly leased space for manufacturing and processing of engineered autologous cell therapy, research and development and offices.

On February 17, 2015, the Company entered into a lease agreement with 2355 Utah Industrial Capital, LLC, for the lease of approximately 43,500 square feet in El Segundo, which is adjacent to Los Angeles International Airport. The lease has a 10-year and seven month term commencing on January 1, 2016. Upon certain conditions, the Company has two options to extend the lease, each for an additional five years. The Company paid $124,183 upon execution of the lease and is required to remit base rent of $124,183 per month, or $2.85 per square foot, which will increase at a rate of 3% per year. The monthly installments will be abated for the months of February 2016, January and February 2017, January 2018, January 2019, January 2020 and January 2021. The Company also has an option to expand the lease for an additional 17,000 square feet at the same rent per square foot as the base premises, which option must be exercised prior to July 1, 2017.

Rent expense charged to operations was $0.6 million and $0.2 million for the three months ended June 30, 2015 and 2014, respectively and was $1.1 million and $0.3 million for the six months ended June 30, 2015 and 2014, respectively. The Company receives from its landlords lease incentives related to tenant improvement allowances, and are recorded as a reduction of rent expense over the term of the respective leases.The Company has incurred expenses eligible for tenant improvement allowances related to its research and development facilities of $3.0 million, of which the Company has recorded $2.6 million within other current assets, and received cash of $0.4 million as of June 30, 2015. The Company has recorded corresponding other current deferred rent liabilities and other non-current deferred rent liabilities related to these tenant improvement allowances within the condensed consolidated balance sheets and recognized a reduction in rent expense of $0.1 million for the three and six months ended June 30, 2015 as a result of the tenant improvement allowances.