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Commitments and Contingencies
9 Months Ended
Sep. 30, 2018
Commitments and Contingencies  
Commitments and Contingencies

10. Commitments and Contingencies

 

Agreements for Office Space

 

In November 2017, the Company entered into a sublease agreement with Auxilium Pharmaceuticals, LLC (the “Sublandlord”) pursuant to which it subleases 33,019 square feet of office space for its headquarters in Wayne, Pennsylvania.  Subject to the consent of Chesterbrook Partners, LP (“Landlord”) as set forth in the lease by and between them and Sublandlord, the sublease has a term that runs through October 2023.  If for any reason the lease between the Landlord and Sublandlord is terminated or expires prior to October 2023, the Company’s sublease will automatically terminate. 

 

In November 2016, the Company entered into a lease agreement with a third party for additional office space in Malvern, Pennsylvania with a term ending in November 2019.  The Company also occupies office and laboratory space in St. Louis, Missouri under the terms of an agreement which it entered into in January 2018 and which expires in December 2018. 

 

Rent expense was $204 and $110 for the three months ended September 30, 2018 and 2017, respectively, and was $682 and $284 for the nine months ended September 30, 2018 and 2017, respectively.  The Company recognizes rent expense on a straight-line basis over the term of the lease and has accrued for rent expense incurred but not yet paid. 

 

Capital Leases

 

Laboratory Equipment

 

The Company leases laboratory equipment which is used in its laboratory space in St. Louis, Missouri under two capital lease financing arrangements which the Company entered into in August 2017 and October 2017, respectively.  The capital leases have terms which end in October 2020 and December 2020, respectively. 

 

Fleet Vehicles

 

The Company leases automobiles for its sales force and other field-based employees under the terms of a master lease agreement with a third party.  The lease term for each automobile begins on the date the Company takes delivery and continues for a period of four years.  The Company has accounted for the automobile leases as capital leases in its condensed consolidated financial statements. 

 

As of September 30, 2018, future minimum payments under operating and capital lease agreements were as follows:

 

 

 

 

 

 

Year Ending December 31, 

    

    

 

 

2018

 

$

312

 

2019

 

 

1,100

 

2020

 

 

1,037

 

2021

 

 

1,054

 

2022

 

 

791

 

Thereafter

 

 

531

 

Total

 

$

4,825