Lease Obligations

12 Months Ended

Dec. 31, 2017

10. Lease Obligations

The Company leases its facilities under operating leases. For the years ended December 31, 2017 and 2016 rent expense was $588,197 and $1,187,989, respectively. The rent expense for the years ended December 31, 2017 and 2016 is net of sublease income of $812,660 and $91,579, respectively.

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 an option 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, 2017, the remaining accrued costs associated with the termination were $95,455.

Between the fourth quarter of 2015 and July, 2016, the Company sublet 3,152 square feet of the first floor office space.

In August 2016, the Company entered into an agreement to sublease approximately 11,000 square feet of office space immediately and an additional 16,000 square feet of office space beginning in January of 2017, with the term of the sublease ending on December 31, 2018. As of December 31, 2017, the remaining accrued costs associated with the termination were $26,202.

The future minimum lease payments under non-cancelable leases as of December 31, 2017 are as follows (excluding sublease income):



Year		Operating Lease Payments
2018	$	2,067,392
2019		11,497
2020		8,622
Total minimum lease payments		2,087,511
Less amounts representing sublease receipts		(764,917)
	$	1,322,594