6. Commitments and Contingencies

Pfizer License Agreement

In April 2011, the Company and Pfizer Inc. (Pfizer) entered into an exclusive license agreement for the clinical product candidate gemcabene, which was subsequently amended and restated in August 2018 (as so amended, the Pfizer Agreement). In exchange for this worldwide exclusive license to certain patent rights and a non-exclusive royalty bearing right and license to certain related data to make, use, develop, commercialize, import and otherwise exploit the clinical product candidate gemcabene, the Company agreed to certain milestone and royalty payments on future sales (See Note 7 — License Agreements). As of September 30, 2019, there was sufficient uncertainty with regard to both the outcome of the clinical trials and the ability to obtain sufficient funding to support any of the cash milestone payments under the Pfizer Agreement, and as such, no liabilities were recorded related to the Pfizer Agreement.

Other Agreements

In May 2016, the Company entered into a non-cancellable lease agreement for its headquarters location, commencing in the third quarter of 2016. The initial term of the agreement was 3 years with an initial monthly base rent of approximately $8,400 and increasing to approximately $8,900 during the last year of the lease term. The total rent expense under this operating classified lease was $17,000 and $26,000 during the three month periods ended September 30, 2019 and 2018, respectively, and $69,000 and $78,000 during the nine month periods ended September 30, 2019 and 2018, respectively. The lease expired in August 2019, and no office space is currently being leased as of September 30, 2019.

Supplemental cash flow information related to the operating lease was as follows (in thousands):



	Nine months ended		Nine months ended
	September 30, 2019		September 30, 2018

Cash paid for amounts included in the measurement of lease liability:
Operating cash flows from operating leases	$	71	$	78

Right-of -use assets obtained in exchange for lease obligations:
Operating leases	$	70	$	—

Supplemental balance sheet information related to the operating lease was as follows (in thousands, except weighted average data):


	As of		As of
	September 30, 2019		December 31, 2018

Right-of-use assets	$	—	$	68


Lease liability	$	—	$	70

Weighted average remaining lease term		—		0.7 years
Weighted average discount rate		—		5.5%

Other Commitments and Contingencies

In the ordinary course of business, from time to time, the Company may be subject to a broad range of claims and legal proceedings that relate to contractual allegations, patent infringement, employment-related matters and other claims. The Company establishes accruals for matters which it believes that losses are probable and can be reasonably estimated. Although it is not possible to predict with certainty the outcome of these matters, the Company is of the opinion that the ultimate resolution of these matters will not have a material adverse effect on its results of operations or financial position.