Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

In December 2013, the Company entered into a three-year lease for 6,837 square feet of office space in Cambridge, Massachusetts. The lease has monthly lease payments of approximately $31,000 for the first twelve months, with annual rent escalation thereafter, and provides a rent abatement of approximately $31,000 for the first full calendar month of the lease term. The lease term commenced and rental payments began in January 2014. The Company has recorded a deferred lease obligation in 2014 which represents the cumulative difference between actual facility lease payments and lease expense recognized ratably over the lease period, which is included in other liabilities. In accordance with the lease, the Company entered into a cash-collateralized irrevocable standby letter of credit in the amount of $125,345, naming the landlord as beneficiary. The Company did not have rent expense associated with this lease in 2013.

The Company leases office equipment under a three year capital lease with payments commencing in February 2014.

At September 30, 2014, the Company’s future minimum payments required under these leases are as follows:

	Operating		Capital
	Lease		Lease			Total
2014	$	94,009	$	1,050		$	95,059
2015		382,872		4,200			387,072
2016		389,709		4,200		$	393,909
2017		—		350			350
Total	$	866,590		9,800		$	876,390
Less amount representing interest				(467	)
Present value of minimum lease payments at September 30, 2014			$	9,333

The Company contracts with various organizations to conduct research and development activities with remaining contract costs to the Company of approximately $6,628,384 and $4,477,081 at September 30, 2014 and December 31, 2013, respectively. 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.