7. Commitments and Contingencies Operating Leases The Company leases office space under operating leases for its locations in South San Francisco, California, Boulder, Colorado and in Stamford, Connecticut. The Companys lease agreements contain escalation clauses; accordingly, the Company straight-lines the rent expense over the lease term. Rent expense under operating leases for the three months ended September 30, 2017 and 2016 was $247,812 and $166,236, respectively. Rent expense under operating leases for the nine months ended September 30, 2017 and 2016 was $645,860 and $520,882, respectively. Future minimum lease payments as of September 30, 2017 are as follows (in thousands): Operating Leases 2017 $ 240 2018 1,369 2019 1,392 2020 1,427 2021 1,464 Thereafter 1,515 $ 7,407 In January 2017, the Company entered into an office lease agreement to replace its existing leased space in South San Francisco, CA. The Companys previous lease expired June 30, 2017. The new lease provided for a term of 51 months, commencing when the landlord delivered the premise to the Company on May 1, 2017. In August 2017, the Company signed the First Amendment to the San Francisco office space lease, extending the end of the original lease term to January 31, 2023. In addition to extending the lease term, the First Amendment provides for additional space, beginning in November 2017. The Company expects to incur approximately $418,000 of annual rent expense associated with the lease. In May 2017, the Company entered into a lease agreement in Boulder, CO. The lease commencement date is October 1, 2017. The lease had a termination option, where the Company had the option to terminate the lease on or prior to September 30, 2017 in exchange for consideration of $10,000 per month. The Company did not exercise the termination option and the lease commenced October 1, 2017. The lease has a term of 63 months, ending December 31, 2022, after which the lease shall continue on a month to month basis. The Company has an option to renew the prim