In February 2015, we amended the lease agreement for our laboratory and office facility in San Diego, California. The amended lease expires on February 28, 2024, a seven-year extension of the previous lease period. The amended lease provides for certain rent-free periods beginning in 2015 and an annual 1% rent increase during the extended lease period. The amended lease is classified as an operating lease. Rent expense is recorded on a straight-line basis considering the deferred rent balance as of the lease amendment and rental payments from the lease amendment date through the extended term of the lease, including all rent-free periods and annual rent increases. The amortization periods for the leasehold incentive obligation and the related tenant improvements have been adjusted to the extended term of the lease.