6. Commitments

Operating Leases

In November 2010, the Company entered into an operating lease for office and laboratory space, which has been amended multiple times. Based on the latest amendment, the lease agreement includes escalating rent payments and is effective through June 30, 2020. The Company is recognizing rent expense on a straight-line basis over the lease term.

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of September 30, 2019 (in thousands):


Period Ending December 31,	Amount
2019		360
2020		721
Total minimum lease payments	$	1,081

Rent expense was $0.1 million and $0.3 million for the three months ended September 30, 2019 and 2018, respectively. Rent expense was $0.2 million and $1.0 million for the nine months ended September 30, 2019 and 2018, respectively. During the three months ended September 30, 2019 and 2018, the Company paid $0.4 and $0.3 million in lease payments, respectively. During the nine months ended September 30, 2019 and 2018, the Company paid $1.1 million and $1.0 million in lease payments, respectively.

On October 15, 2018, the Company entered into a short-term lease with Inzen Therapeutics (“Inzen”), to sublease a portion of the Company’s facility. The sublease term is from October 15, 2018 through June 30, 2020. Inzen is obligated to pay the Company approximately $0.3 million in base rent during the remainder of the year ended December 31, 2019 and $0.5 million during the year ended December 31, 2020. The Company is still obligated to all payment terms pursuant to the lease agreement, as amended. During the three and nine months ended September 30, 2019, the Company received $0.3 and $0.8 million in payments from Inzen, respectively, which was recorded as a deduction to rent expense in the accompanying condensed consolidated statement of operations.

On September 9, 2019, the Company, as subtenant, and Allied Minds, LLC (“Allied Minds”) entered into a Sublease (the “Sublease”) with respect to approximately 11,472 square feet of space leased by Allied Minds pursuant to a lease agreement by and between SPUS7 High Street, LP and Allied Minds. The Sublease term will commence on November 1, 2019 and the Company’s payment of rent under the Sublease will commence on January 1, 2020. The Sublease term is scheduled to end on July 31, 2022 or upon any earlier termination of the original lease agreement between SPUS7 High Street, LP and Allied Minds. Under the terms of the Sublease, the Company is obligated to pay Allied Minds aggregate rent of approximately $1.9 million.