Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Leases

In February 2015, the Company entered into a 32-month lease agreement, as a sublessee, for 18,599 square feet of office space to be used as the Company’s corporate headquarters. The lease term is through October 2017. The Company also leases a total of 3,713 square feet of office space with a lease term through March 2018.

In January 2016, the Company entered into a 20-month lease agreement, as a sublessee, for 24,105 square feet of lab space. The lease term is from January 2016 through August 2017, and the total lease payments through the end of the lease will be approximately $726,000. The Company also leases a total of 4,047 square feet of lab space with a lease term through March 2017.

Annual future minimum payments under operating leases as of December 31, 2016 were as follows (in thousands):



	Operating Leases		Sublease Income			Net Operating Leases
2017	$	1,040	$	(74	)	$	966
2018	36		(19		)	17
Total minimum lease payments	$	1,076	$	(93	)	$	983

On December 29, 2016, the Company entered into an agreement with BMR-Axiom LP to lease office and laboratory space in the building located at 4550 Towne Centre Court, San Diego, California (the “Lease”) for a period of ten years commencing on or about November 1, 2017.

The Lease provides an option to extend the Lease for an additional five years at the end of the initial term, as well as an option to terminate the Lease on or before March 31, 2017, subject to certain contingencies. Due to the existence of a termination right, prior to the commencement of rent payments under the Lease, potential rent payments have not been included in the lease commitment table set forth above. Following the lapse of the termination right, these commitments will be reflected in the lease commitment table, to the extent the Lease is not terminated. The Company will be providing a standby letter of credit for $303,000 in lieu of a security deposit. This amount will increase to $909,000 on March 31, 2017, then decrease to $606,000 after year two of the lease and decrease to $303,000 after year five of the lease term. The annual rent under the Lease is initially $3,636,000 per annum, subject to escalation during the term. In addition to rent, the Lease requires the Company to pay certain taxes, insurance, and operating costs relating to the leased premises. The Lease contains customary default provisions, representations, warranties and covenants.

Rent expense was $1,093,000, $699,000 and $176,000 for the years ended December 31, 2016, 2015 and 2014, respectively.

Licensing Agreements

In the normal course of business, the Company enters into licensing agreements under which the Company commits to certain annual maintenance payments. Annual future minimum licensing payments under the Company's agreements as of December 31, 2016 are as follows (in thousands):



	Minimum Payments
2017	$	89
2018	99
2019	57
2020	63
2021	27
Thereafter	120
Total minimum annual maintenance fee payments	$	455