Commitments and contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Lease commitments

On April 29, 2014, the Company leased office space in Boston, Massachusetts under an operating lease that was scheduled to expire on August 31, 2017. In January 2017, the Company signed a lease to extend the use of the same office space from September 1, 2017 to August 31, 2019 (see Note 18). Additionally, on October 21, 2014, the Company leased office space in New York, New York under an operating lease that is scheduled to expire on October 31, 2018. As of December 31, 2016, the minimum future lease payments under the Company's operating leases were as follows:



2017	$	312,307
2018	122,570
Total minimum lease payments	$	434,877

The Boston lease agreement signed in January 2017 resulted in an aggregate increase to future minimum lease payments of $933,186 through 2019, that are not reflected in the table above.

Rent expense is being recognized on a straight-line basis. The Company recorded approximately $337,000 and $253,000 of rent expense for the twelve months ended December 31, 2016 and December 31, 2015, respectively, and $152,000 of rent expense for the period from February 26, 2014 (inception) to December 31, 2014.

Royalty agreement

In March 2014, the Company entered into a royalty agreement with certain of its founders. Under the agreement, the Company agreed to pay the founders an aggregate royalty of 2% of gross sales of the Company's products in perpetuity. The Company began incurring royalty expense upon commencement of HOTSHOT sales during the second quarter of 2016. The Company recorded approximately $20,000 of royalty expense during the twelve months ended December 31, 2016. Royalty amounts owed to the founders as of December 31, 2016 were approximately $4,000. No royalty amounts were owed to the founders as of December 31, 2015 or 2014.

Litigation

The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities as of December 31, 2016.