9. Commitments and Contingencies In December 2013, the Company entered into a three-year lease for 6,837 square feet of office space in Cambridge, Massachusetts. The lease has monthly lease payments of approximately $31,000 for the first twelve months, with annual rent escalation thereafter, and provides a rent abatement of approximately $31,000 for the first full calendar month of the lease term. The lease term commenced and rental payments began in January 2014. The Company has recorded a deferred lease obligation in 2014 which represents the cumulative difference between actual facility lease payments and lease expense recognized ratably over the lease period. In accordance with the lease, the Company entered into a cash-collateralized irrevocable standby letter of credit in the amount of $125,345, naming the landlord as beneficiary. The Company did not have rent expense associated with this lease in 2013. The Company leases office equipment under a three year capital lease with payments commencing in February 2014. At March 31, 2014, the Company s future minimum payments required under these leases are as follows: Operating Lease Capital Lease Total 2014 $ 282,026 $ 3,150 $ 285,176 2015 382,872 4,200 387,072 2016 389,709 4,200 393,909 2017   350 350 Total $ 1,054,607 11,900 $ 1,066,507 Less amount representing interest (625 ) Present value of minimum lease payments at March 31, 2014 $ 11,275 The Company contracts with various organizations to conduct research and development activities with remaining contract costs to the Company of $4,032,370 and $4,477,081 at March 31, 2014 and December 31, 2013, respectively. The scope of the services under the research and development contracts can be modified and the contracts cancelled by either party upon written notice.