8. Commitments and Contingencies Lease Commitments The Company s operating lease obligations primarily consist of leased office, laboratory, and manufacturing space under a non-cancelable operating lease that expires in November 2016. The lease agreement includes two renewal provisions allowing the Company to extend this lease for additional periods of three years each. In addition to the minimum future lease commitments presented below, the lease requires the Company to pay property taxes, insurance, maintenance, and repair costs. The lease includes a rent holiday concession and escalation clauses for increased rent over the lease term. Rent expense is recognized using the straight-line method over the term of the lease. The Company records deferred rent calculated as the difference between rent expense and the cash rental payments. In connection with the facility lease, the landlord also provided incentives of $369,000 to the Company in the form of leasehold improvements. These amounts have been reflected as deferred rent and are being amortized as a reduction to rent expense over the term of the Company s operating lease. Rent expense was $231,000 and $230,000 for the three months ended September 30, 2015 and 2014, and $708,000 and $691,000 for the nine months ended September 30, 2015 and 2014, respectively. The future minimum lease payments as of September 30, 2015, are as follows (in thousands): Future Minimum Lease Payments Period ending December 31, 2015 $ 283 2016 1,060 Total minimum lease payments $ 1,343 Purchase Obligations Purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business. The Company had noncancellable commitments to suppliers for purchases totaling $3,158,000 and $1,334,000 as of September 30, 2015 and December 31, 2014, respectively. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and may provide for indemnification of th