Commitments and Contingencies
|6 Months Ended|
Jun. 30, 2016
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||
Operating Lease Commitment
On May 30, 2014, the Company entered into a commercial lease for 2,387 square feet of office space in Norwood, MA. The lease commenced on July 1, 2014, had a three-year term, and required a standby letter of credit of $13,728 payable in favor of the landlord. In August 2015, the lease was amended for the relocation of the Company into 6,326 square feet of office space within the existing building. In January 2016, the Company began occupying the space under this lease amendment, which is for a five-year term. The amendment also required an increase in the standby letter of credit to $36,375 (See Note 3). The Company records the total rent payable during the lease term on a straight-line basis over the term of the lease and records the difference between the rents paid and the straight-line rent as deferred rent, which is classified in other long-term liabilities as of June 30, 2016.
Pursuant to the terms of the Companys non-cancelable lease agreements in effect at June 30, 2016, the future minimum rent commitments are as follows:
Total rent expense for the three months ended June 30, 2016 and 2015 was $37,666 and $13,725, respectively. Total rent expense for the six months ended June 30, 2016 and 2015 was $74,212 and $27,448, respectively.
Capital Lease Commitment
On December 30, 2015, the Company entered into a capital lease agreement for a copier machine. The lease payments commenced when the machine was placed in service in January 2016. The lease is for a three-year term and includes a bargain purchase option at the end of the term. In the accompanying balance sheet as of June 30, 2016, the current portion of this capital lease obligation is classified in accrued expenses and the long-term portion of the capital lease obligation is classified in other long-term liabilities. Pursuant to the terms of this capital lease agreement, the future minimum capital lease commitments are as follows as of June 30, 2016:
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef