Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

13. Commitments and Contingencies

The Company leases office space in Austin, TX under an operating lease that commenced in January 2015. The lease was amended in September 2016 to increase office space and extend the term to December 31, 2020. As provided in the lease amendment, monthly lease payments are subject to annual increases through the lease term. The Company recognizes rent expense on a straight-line basis over the noncancelable term of the lease.

The following table summarizes the Company’s future minimum lease commitments as of September 30, 2016 (in thousands):

Year ending December 31:
2016	$	50
2017		263
2018		284
2019		292
2020		301
Total minimum lease payments	$	1,190

Under the terms of the office lease agreement, the Company provided the lessor with a security deposit of $54,000. The lessor is entitled to retain all or any part of the security deposit for payment in the event of any uncured default by the Company under the terms of the lease. The security deposit requirement was reduced by $18,000 in January 2016 and returned to the Company. Pursuant to the terms of the lease amendment, the security deposit requirement was set at $39,000 until the expiration of the lease.

Rent expense for each of the three months ended September 30, 2016 and 2015 was $35,000. Rent expense for each of the nine months ended September 30, 2016 and 2015 was $105,000.