Operating Leases

The Company leased office space under an operating lease agreement which expired on May 31, 2017 and was amended to a month-to-month lease. In June 2020, we terminated the lease for the majority of our corporate headquarters (approximately 4,965 square feet). As of December 31, 2020 we maintain approximately 1650 square feet of office space on a month-to-month basis.

Rent expense for the years ended December 31, 2020 and 2019 was approximately $200,000 and $349,000, respectively, and is included in general and administrative expenses in the accompanying statements of operations. Rental payments are expensed in the statements of operations in the period to which they relate. Scheduled rent increases, if any, are amortized on a straight-line basis over the lease term.

Related Party Transactions

In May 2018, the Company entered into a consulting agreement with a member of the Board of Directors, pursuant to which the board member provides the Company with strategic advice and planning services for which he receives a cash payment of $7,500 per month from the Company. The consulting agreement had an initial term ending December 31, 2019, and could be extended upon mutual agreement of the board member and the Company. The consulting agreement was extended throughout fiscal year 2020, and continues to be active during fiscal year 2021.