7. Leases

The Company has a single lease related to its facility in Dundee, Scotland.

As of and for the nine months ended September 30, 2019

The Company recognized operating lease expenses of $227,853. Cash payments made during the nine months ended September 30, 2019 totaled $240,846 and were presented as cash outflows from operating activities. The remaining lease term is approximately 6.1 years as of September 30, 2019. The discount rate used by the Company in determining the lease liability was 12%.

Remaining lease payments under the lease are:


2019	$	79,318
2020		317,272
2021		317,272
2022		315,988
2023		313,421
Thereafter		562,463
	$	1,905,734

As of and for the twelve months ended December 31, 2018

Prior to January 1, 2019, the Company accounted for its Dundee facility lease under ASC 840, Leases. Rent expense, which includes lease payments related to the Company’s research and development facilities and corporate headquarters and other rent related expenses, was $0.5 and $0.4 million for each of the years ended December 31, 2017 and 2018, respectively.

The following is a summary of the Company’s future contractual obligations and commitments relating to its facilities leases as at December 31, 2018:


	Operating
	Lease
	Obligation
2019	$	321,000
2020		321,000
2021		321,000
2022		321,000
2023		321,000
thereafter		581,000
Total future minimum lease obligations	$	2,186,000