Note

Leases

The Company leases office facilities under a non-cancelable operating lease agreement expiring on

December 31, 2019.

The Company also leases a corporate office facility previously utilized by Alliqua through an operating lease agreement, located in Yardley, Pennsylvania that expires in

2023.

Effective

February 1, 2019,

this property has been subleased to The Pinnacle Health Group, Inc. through

April 20, 2023

and the Company receives monthly lease payments.

Future minimum payments under non-cancellable leases as of

June 30, 2019

are as follows (in thousands):

Period ending December 31	Future Commitments
2019 (remaining 6 months)	$	232
2020		227
2021		232
2022		236
2023		80
Total future minimum lease payments		1,007
Less: imputed interest		(167	)
Total	$	840

Total operating lease expenses for the

three

and

six

months ended

June 30, 2019

was

$98,000

and

$165,000,

respectively, and are reflected in general and administrative expenses in the condensed consolidated statements of operations. Rent expense for the

three

and

six

months ended

June 30, 2018

was

$58,000

and

$115,000,

respectively.

As of

June 30, 2019,

the Company had

leases that were classified as a financing lease. As of

June 30, 2019,

the Company did

not

have additional operating and financing leases that have

not

yet commenced.

During the

three

and

six

months ended

June 30, 2019,

the Company recognized

$42,000

of sublease income on its condensed consolidated statement of operations, which is recorded as an offset against general and administrative expenses.