NVUS 2018 Annual Report

Accrued expenses and other liabilities consisted of the following as of December 31, 2018 and December 31, 2017 (in thousands):

Year Ended December 31,

2018

2017

Accrued compensation and related expenses

Ͷ 85

$

742 $

Accrued clinical

735 194 160

Accrued professional services

158 111

Accrued vacation Accrued other

Ͷ

14

Total accrued expenses and other liabilities

$

1,845 $

354

Note 5. Goodwill The changes in the carrying amount of goodwill consisted of the following as of December 31, 2018 and December 31, 2017 (in thousands):

Gross Carrying Amount

Accumulated Impairment Losses

Net Carrying Amount

Balance as of January 1, 2017 Ͷ $ Ͷ Additions (1) 1,867 Ͷ 1,867 Balance as of December 31, 2017 1,867 Ͷ 1,867 Additions Ͷ Ͷ Ͷ Balance as of December 31, 2018 $ 1,867 $ Ͷ $ 1,867 $ Ͷ $

(1) Relates to the Reverse Merger (See Note 3. Reverse Merger ).

Note 6. Commitments and Contingencies Operating Leases

The Company leases office space under various operating leases. Total rent expense for all operating leases in the consolidated statements of operations and comprehensive loss was approximately $170,000 and $1.0 million for the year ended December 31, 2018 and 2017, respectively. In February 2015, Tokai entered into a sublease for 15,981 square feet of office space in Boston, Massachusetts. The term of the sublease commenced on April 1, 2015 and initially d expired on December 31, 2016 until subsequently extende through July 31, 2018. In November 2017, the Company ter paid an additional $455,000 in minated the lease early and advance rent in conjunction with the lease termination. In September 2015, Otic entered into a three-year operating lease for 5,197 square feet of office space in Irvine, California. The lease had an initial expiration date of August 31, 2018; however, the Company extended the term of the lease through September 30, 2021 by amending the office lease in April 2018. Future payments under noncancelable operating leases having initial or remaining terms of one year or more are as follows for the succeeding fiscal year and thereafter (in thousands):

2019 2020 2021

$

180 188 146 514

Total minimum lease payments

$

F-17