Operating leases

12 Months Ended

Dec. 31, 2019

9. Operating leases

The Company enters into various non‑cancelable, operating lease agreements for its facilities and equipment in order to conduct its operations. The Company expenses rent on a straight‑line basis over the life of the lease and has recorded deferred rent on the balance sheets within both accrued expenses and other current liabilities and other long-term liabilities.

On October 13, 2016, the Company entered into a lease agreement with the landlord for office space totaling approximately 16,500 square feet. The term of this lease commenced on April 1, 2017 and continues through August 31, 2022. The Company has an option to renew the lease for one renewal term of 5 years. The lease provided the Company with a tenant improvement allowance of $0.4 million. The Company recorded the tenant improvement allowance incurred as a deferred lease incentive and is amortizing the deferred lease incentive through a reduction of rent expense ratably over the lease term.

On July 18, 2018, the Company entered into a sublease agreement for additional office space adjacent to the Company’s existing headquarters in Evanston, Illinois, totaling approximately 6,172 square feet. The term of the lease commenced on July 18, 2018 and continues through September 30, 2022. On January 31, 2019, the sublease agreement was terminated, and the Company entered into an amended lease agreement with the landlord for the same additional office space. The terms commence on February 1, 2019 and continue through August 31, 2022.

Total rent expense, inclusive of lease incentives, under the operating lease agreements amounted to $0.9 million and $0.7 million for the years ended December 31, 2019 and 2018, respectively.

Aggregate future minimum annual rental commitments under these non‑cancelable lease agreements are as follows at December 31, 2019 (in thousands):


Year ending December 31,
2020	$	864
2021		876
2022		590
2023		—
2024		—
Thereafter		—
	$	2,330