In May 2016, the Company signed an operating lease for laboratory and office space that commenced in June 2016 (the “2016 Lease”). The 2016 Lease was amended to increase the area leased to approximately 31,000 square feet and to extend the expiration date to February 28, 2027. As mentioned above in “Recent Accounting Pronouncements” in Note 2, the adoption of ASU 2016-02 on January 1, 2019 for the 2016 Lease, as amended, resulted in a $3.0 million of right-of-use asset and $3.4 million of lease liability being recognized on the condensed consolidated balance sheet as of March 31, 2019.

The Company’s future minimum operating lease payments from the 2016 Lease, as amended, were as follows (in thousands):

	Operating Leases
2019 (remaining nine months)	$	321
2020		515
2021		592
2022		604
2023		616
Thereafter		2,033
Future minimum operating lease payments	$	4,681
Less: Interest		1,287
Present value of lease liability	$	3,394
Current portion of lease liability		418
Long-term portion of lease liability		2,976

The Company recorded $125 thousand and $31 thousand in rent expense for the three months ended March 31, 2019 and 2018, respectively.

The Company has entered into various product manufacturing and clinical supply agreements with Contract Manufacturing Organizations (“CMOs”). The product manufacturing and clinical supply agreements provide the terms and conditions under which the CMOs will formulate, fill, inspect, package, label and test our products, KB103 and KB105 for clinical supply. The Company is obligated to make milestone payments. Additionally, certain raw materials, supplies, outsourced testing and other services for the purposes of batch production will be invoiced separately by the CMOs. The estimated remaining commitment as of March 31, 2019 under these agreements for the manufacturing of our drug product is approximately $2.2 million. The Company is also responsible for the payment of a monthly service fee for project management services for the duration of the arrangement. The Company has incurred expenses under these agreements of $803 thousand and $801 thousand for the three months ended March 31, 2019 and 2018, respectively.