NOTE 9 – COMMITMENTS

Research and Development Contracts

The Company has entered into contracts with various contract research organizations with outstanding commitments aggregating approximately $5.5 million at December 31, 2018 for future work to be performed.

Operating Leases 

As of December 31, 2018, future minimum lease payments are as follows (in thousands):

Rent expense charged to operations, which differs from rent paid due to rent credits and to increasing amounts of base rent, is calculated by allocating total rental payments on a straight-line basis over the term of the lease. During the years ended December 31, 2018 and 2017, rent expense was $0.5 million and $0.6 million, respectively, and as of December 31, 2018 and 2017, deferred rent payable was $12,000 and $32,000, respectively, including the current portion, which at December 31, 2018 and 2017, was $12,000 and $20,000, respectively, which is included in accrued expenses in 2018 and 2017.

Defined Contribution Plan

Effective April 1, 2014, the Company established a qualified defined contribution plan (the “401(k) Plan”) pursuant to Section 401(k) of the Code, whereby all eligible employees may participate. Participants may elect to defer a percentage of their annual pretax compensation to the 401(k) plan, subject to defined limitations. The Company is required to make contributions to the 401(k) Plan equal to 100 percent of each participant’s pretax contributions of up to six percent of his or her eligible compensation, and the Company is also required to make a contribution equal to three percent of each participant’s salary, on an annual basis, subject to limitations under the Code. For the years ended December 31, 2018 and 2017, the Company charged operations $0.2 million and $0.1 million, respectively, for contributions under the 401(k) Plan.