NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except unit, share, per unit, and per share data)
common stock at December 31, 2017 would increase or decrease the fair value of the common stock warrant liability in the amount of $87.
The following is a reconciliation of the Company’s liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2017:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Preferred Stock Warrant Liability
Common Stock Warrant Liability
Balance at January 1, 2017
Gain included in other income (expense), net
Balance at December 31, 2017
11. Commitments and Contingencies
The Company conducts all operations in a facility under an operating lease which commenced in March 2012 and was originally scheduled to end in February 2015. During the first quarter of 2014, the lease was extended for an additional six years through February 2021, and includes a renewal option. During the second quarter of 2016, the Company amended the lease agreement to include additional space to be used primarily for administrative functions effective in May 2016. Lease payments include a fixed payment amount as well as contingent payments related to a proportionate share of operating and real estate expenses. At the inception of the lease, the lessor paid for leasehold improvements totaling $52 which has been capitalized and is being amortized over the lease term. The fixed payment amounts, including those in connection with the amended lease agreement in the second quarter of 2016, increase over the term of the lease but rent expense is recognized on a straight-line basis resulting in the recognition of deferred rent liability of $48 and $50 as of December 31, 2017 and 2016, respectively, calculated on the basis of the extended lease agreement.
Rent expense consisted of the following:
Straight-line rent expense
Contingent rent expense
Total rent expense