Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 6. Commitments and Contingencies

Lease Obligations

The Company’s corporate headquarters is in Dallas, Texas, where it leases approximately 2,400 square feet.  Total rent expense recognized under the lease was $57 thousand and $52 thousand for the years ended December 31, 2016 and 2015, respectively. The office lease expires in May 2020. Future minimum rent is as follows (in thousands):

2017	$	58
2018		59
2019		60
2020		26
2021		—
Thereafter		—
Total future minimum rent with non-cancellable terms of one year or more	$	203

Other Contractual Obligations

As of December 31, 2016, the Company had unfunded commitments of $10.6 million on the loans and royalty purchases discussed in Note 2. Of the total $10.6 million, $0.3 million and $3.8 million are potentially payable to the sellers of the Cambia® and Narcan® royalties, respectively. There are no additional earnout payments contracted to be paid by us to any of our partner companies. As of December 31, 2016, our unfunded commitments were as follows (in millions):

Cambia®	$	0.3
Keystone Dental, Inc.		2.5
Narcan®		3.8
Tenex Health, Inc.		3.0
Thermedx, LLC		1.0
Total Unfunded Commitments	$	10.6

All unfunded commitments are contingent upon reaching an established revenue threshold or other performance metrics on or before a specified date or period of time per the terms of the royalty purchase or credit agreements, and in the case of loan transactions, are only subject to being advanced as long as an event of default does not exist.

Litigation

The Company is involved in, or has been involved in, arbitrations or various other legal proceedings that arise from the normal course of its business. The ultimate outcome of any litigation is uncertain, and either unfavorable or favorable outcomes could have a material negative impact on the Company’s results of operations, balance sheets and cash flows due to defense costs, and divert management resources.  The Company cannot predict the timing or outcome of these claims and other proceedings. Currently, the Company is not involved in any arbitration and/or other legal proceeding that it expects to have a material effect on its business, financial condition, results of operations and cash flows.

Indemnification

As permitted by Delaware law, the Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving in such capacity, or in other capacities at the Company’s request. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any such amounts. As a result of the Company’s insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is insignificant. Accordingly, the Company had no liabilities recorded for these agreements as of December 31, 2016 and 2015.