At December 31, 2018, we had operating leases for our manufacturing and laboratory facilities and administrative offices in Cleveland that expire on December 31, 2025 and total $5,012,000. We have the option to extend the leases for an additional five years. We can also terminate the lease early at December 31, 2020, at the end of year five, and pay for unamortized tenant improvements. Our total lease costs and unamortized tenant improvements would total $2,205,000 by exercising the early termination provision.

 

At December 31, 2018, we also had an operating lease for our New York office until January 31, 2026 totaling $7,145,000, an operating lease for our Spain office until September 31, 2019 totaling $21,000 and an operating lease for our Dallas office until August 31, 2019 totaling $19,000.

Future operating lease payments are as follows:

 

Rent expense for the years ended December 31, 2018, 2017 and 2016 was $1,297,000, $742,000 and $548,000, respectively.

 

 

We have engaged a contract manufacturer to assist us with developing and defining the processes necessary to manufacture our MPS IIIA and RDEB products. We had a remaining commitment of $15 million at December 31, 2018. The amounts are payable based on the completion of specific activities outlined in the contracted project plan; we expect to spend $10.1 million in 2019 and $4.9 million in 2020.

 

 

We are not currently subject to any material pending legal proceedings as of December 31, 2018.