Lease Obligations

12 Months Ended

Dec. 31, 2015

10. Lease Obligations

The Company leases its facilities under operating leases. For the years ended December 31, 2015 and 2014 rent expense was $1,205,338 and $1,068,972, respectively. The rent expense for the year ended December 31, 2015 is net of sublease income of $18,912.

In January 2006, the Company moved its primary operations into its current facilities. The facility is subject to a lease which expires in December 31, 2018. Under the terms of the lease, the Company has options to renew for up to three additional years. The lease contains an escalating rent provision which the Company has straight-lined over the term of the lease.

In the third quarter of 2013, the Company modified the existing lease agreement to terminate approximately 13,000 square feet of unimproved space. The costs associated with the termination were $515,138, and were accrued as a rent liability as of September 30, 2013. As of December 31, 2015, the remaining accrued costs associated with the termination were $284,793.

In the fourth quarter of 2015, the Company entered a sublease agreement to sublease 3,152 square feet of the first floor office space through December 31, 2018.

The future minimum lease payments under non-cancelable leases as of December 31, 2015 are as follows:



Year		Operating Lease Payments
2016	$	1,968,006
2017		1,975,514
2018		2,026,362
Total minimum lease payments		5,969,882
Less amounts representing sublease receipts		(233,248)
	$	5,736,634