5.	Commitments and Contingencies

July 2015,

the Company entered into a manufacturing services agreement with Lonza Ltd, or (“Lonza”) for the processing, development and manufacturing of the active pharmaceutical ingredient (“API”) in its lead product candidate, vonapanitase. Under the agreement, the Company will issue purchase orders authorizing Lonza to manufacture API batches and will pay for the services and batches in accordance with terms and assumptions in the agreement and to be set forth in a project plan. As of

September, 30, 2017,

the Company has issued a purchase order for

7.6

million Swiss Francs, approximately

$7.8

million at current exchange rates, for the manufacturing of

three

batches that commenced in

July 2017

and

one

batch to commence by the end of

2019.

As of

September 30, 2017,

nearly all of the services related to the

three

batches that commenced in

July 2017

have been rendered under this purchase order.

Future minimum payments required under operating leases as of

September 30, 2017

are summarized as follows (in thousands):

Year Ending December 31:	Amount

2017		44
2018		270
2019		207
Total minimum lease payments	$	521

In addition to the base rent, the Company is also responsible for its share of operating expenses and real estate taxes, in accordance with the terms of the lease agreement. In

August 2017,

the Company extended its lease until

September 30, 2019.

Pursuant to the lease amendment, the Company has provided a security deposit in the amount of

$22,000

to the lessor.

Restricted cash related to facilities leases

As of

September, 30, 2017

and

December 31, 2016,

the Company had

$22,000

in an outstanding letter of credit to be used as collateral for leased premises. As of

September, 30, 2017

and

December 31, 2016,

the Company pledged an aggregate of

$22,000

to the bank as collateral for the letter of credit, which is included in long-term assets.