Commitments and Contingencies

The Company has entered into commitments under its license agreement with Takeda (See Note 3), services agreements with RSI and RSG (See Note 6(A)), and financing agreements with NovaQuest and Hercules (See Note 5). In addition, the Company has entered into services agreements with third parties for pharmaceutical R&D and manufacturing activities and has a lease agreement for office space located in Brisbane, California. Expenditures to contract research organizations, or CROs, and contract manufacturing organizations, or CMOs, represent significant costs in the Company’s clinical development of its product candidates. Subject to required notice periods and the Company’s obligations under binding purchase orders, the Company can elect to discontinue the work under these agreements at any time. The Company expects to enter into additional commitments as its business further develops.

The Company may be, from time to time, a party to various disputes and claims arising from normal business activities. The Company accrues for loss contingencies when available information indicates that it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated. In the cases where the Company believes that a reasonably possible loss exists, the Company discloses the facts and circumstances of the loss contingency, including an estimable range, if possible.

The Company leases 40,232 square feet of office space located in Brisbane, California, pursuant to an operating lease agreement that expires in May of 2026. The Company has the option to extend the lease term for an additional seven years.

Future operating lease obligations (excluding the optional lease renewal term) as of March 31, 2018 are as follows (in thousands):



Years Ended March 31,	Operating Leases

2019	$	1,347
2020	2,009
2021	2,063
2022	2,127
2023	2,200
Thereafter	7,650
Total minimum operating lease payments	$	17,396

Rent expense for the years ended March 31, 2018 and 2017 was $0.9 million and $0.3 million, respectively. The Company had no rent expense for the period from February 2, 2016 (Date of Inception) to March 31, 2016.