8. 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 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.

In December 2014, the Company entered into a First Amendment to Lease, or the Amendment, for additional office space contiguous to its current office space in Cambridge, Massachusetts. The Amendment includes leasing an additional 8,530 square feet of office space, or the Expansion Space, with an occupancy date of March 13, 2015. The Amendment provides for additional monthly lease payments of approximately $45,000 for the 8,530 square feet for the first twelve months and provides for annual rent escalations thereafter. The monthly rent on the existing 6,837 square feet will remain at approximately $32,000 through December 31, 2016, the expiration of the lease. The Amendment includes a Landlord’s contribution for leasehold improvements in the amount of approximately $100,000 which will be accounted for as a deferred lease incentive and reduction in monthly rent expense over the term of the lease. The Company recorded an additional deferred lease obligation for the Expansion Space which represents the cumulative difference between actual facility lease payments and lease expense recognized ratably over the lease period. The Company has an existing cash-collateralized irrevocable standby letter of credit of $125,345, naming the landlord as beneficiary. In connection with the Amendment, the Company paid an additional cash security deposit to the landlord of $179,130. These amounts are included in other assets.

The Company leases office equipment under a three year capital lease with payments commencing in February 2014. The capital lease amounts are included in accrued expenses and other liabilities.

At June 30, 2015, the Company’s future minimum payments required under these leases are as follows:

	Operating		Capital
	Lease		Lease		Total
	(in thousands)
2015	$	460	$	4	$	464
2016		936		8		944
2017		—		5		5
2018		—		1		1
Total	$	1,396		18	$	1,414
Less amount representing interest				—
Present value of minimum lease payments at June 30, 2015			$	18

The Company recorded $0.2 million and $0.1 million in rent expense for the three months ended June 30, 2015 and 2014, respectively, and $0.3 million and $0.2 million in rent expense for the six months ended June 30, 2015 and 2014, respectively.

The Company contracts with various organizations to conduct research and development activities with remaining contract costs to the Company of approximately $9.2 million and $4.3 million at June 30, 2015 and December 31, 2014, 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.