2018 Operating Lease. In February 2018, as amended in March 2018, the Company entered into a non-cancelable operating lease for a new facility in San Diego, California. The lease has an initial term of seven years and the Company has an option to extend the term of the lease for an additional five years and has a termination option subject to early termination fees. The lease is subject to base lease payments and additional charges for common area maintenance and other costs and includes certain lease incentives and tenant improvement allowances. Under the terms of the lease, the Company provided the lessor with an irrevocable letter of credit in the amount of $0.5 million. The lessor is entitled to draw on the letter of credit in the event of any default by the Company under the terms of the lease.

Rent expense is being recognized on a straight-line basis over the term of the lease. Rent expense was $0.6 million, $0.2 million and $0.1 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Future Minimum Payments. As of December 31, 2018, future minimum payments under non-cancellable operating leases were as follows (in thousands):

Year ending December 31,	Minimum Payments
2019	$	1,058
2020		1,123
2021		1,173
2022		1,208
2023		1,244
Thereafter		2,151
Total	$	7,957

From time to time, the Company may be subject to various claims and suits arising in the ordinary course of business. The Company does not expect that the resolution of these matters will have a material adverse effect on its financial position or results of operations.