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Commitments and Contingencies
12 Months Ended
Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

11. Commitments and Contingencies

The Company leases office space in Crestwood, Kentucky under the terms of an operating lease, as amended. The lease expires in July 2023. In April 2017, the Company entered into a lease for office space in Waltham, Massachusetts (the “Waltham Lease”). The Waltham Lease has a term of 60 months and includes leasing 6,126 square feet of office space. The Waltham Lease provides for initial monthly lease payments of $17,612 per month. The base rent payable over the lease period is $1,117,995. In July 2018, this lease was amended for payments starting January 2019.  The Waltham lease as amended has a term of 78 months and includes leasing approximately 22,600 square feet of office space.  The lease provides for initial monthly payments of $44,375 per month.  The base rent payable over the lease period is $5,352,094. Lease expense for the years ended December 31, 2016, 2017, and 2018 was $117,222, $351,468 and $636,835, respectively.

The Company leases certain medical equipment for use in clinical trials under the terms of an operating lease effective May 2018, whereby each piece of equipment will be rented for a minimum of 24 months upon installation at clinical sites.  The agreement can be extended upon request. Lease expense for the year December 31, 2018 was $161,925.  

At December 31, 2018, the Company’s future minimum payments required under our leases are as follows:

 

2019

 

 

 

$

1,251,720

 

2020

 

 

 

 

1,292,025

 

2021

 

 

 

 

975,750

 

2022

 

 

 

 

998,350

 

2023 and thereafter

 

 

 

 

2,341,219

 

 

 

 

 

$

6,859,064

 

 

The Company contracts to conduct research and development activities with remaining contract costs of approximately $1.9 million at December 31, 2018 that will be incurred in future periods. The scope of the services under the research and development contracts can be modified and the contracts cancelled by the Company upon written notice. In some instances, the contracts may be cancelled by the third party upon written notice.

Indemnifications—In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend indemnified parties for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred any cost to defend lawsuits or settle claims related to these indemnification provisions.

Legal—During the normal course of business, the Company may be a party to legal claims that may not be covered by insurance. Management does not believe that any such claims would have a material impact on the Company’s consolidated financial statements.