Commitments and Contingencies
|9 Months Ended|
Sep. 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 $13,725 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 (August 2015 Amendment). In January 2016, the Company began occupying the space under this lease amendment, which is for a five-year term. The August 2015 Amendment also required an increase in the standby letter of credit to $36,375 (See Note 3).
In September 2016, the lease was amended for the Companys expansion into an additional 4,088 square feet of office space within the existing building (September 2016 Amendment). The Company began occupying this space in early November 2016 and the final lease payment per the terms of the September 2016 Amendment is due in January 2021. Additionally, the September 2016 Amendment requires an increase in the standby letter of credit to $50,000.
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 September 30, 2016.
Pursuant to the terms of the Companys non-cancelable lease agreements in effect at September 30, 2016, the future minimum rent commitments are as follows:
Total rent expense for the three months ended September 30, 2016 and 2015 was $37,666 and $14,024, respectively. Total rent expense for the nine months ended September 30, 2016 and 2015 was $111,878 and $41,472, 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 September 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 September 30, 2016:
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef