Commitments and contingencies

3 Months Ended

Mar. 31, 2015

Commitments and contingencies

Commitments and contingencies

Note 8 - Commitments and contingencies

Operating leases

During 2008, the Company relocated its headquarters to Gaithersburg, Maryland. The operating lease for that facility contained stated monthly rates with annual increases effective each anniversary date, and was scheduled to terminate in September 2012. In April 2011, this lease was modified and extended until September 2014; in March 2014, the Company extended the termination date to April 2015.  On March 20, 2015, the Company executed the Fifth Amendment to Lease Agreement, or the Fifth Amendment, with respect to the lease of its existing corporate facility. The Fifth Amendment, which includes an initial rent abatement period and subsequent annual rate increases, extends the term of the existing lease by 69 months effective May 1, 2015, with one additional five-year renewal at the Company’s election; the Company has the option to terminate the Fifth Amendment and extend the lease for up to one year.  The new extension contained similar terms and conditions, except that 50% of the monthly rental fee for October and November 2014 was abated. The Company is responsible for all utilities, repairs, insurance, and taxes under this operating lease. Rent expense under the Company’s operating leases for the three months ended March 31, 2015 and 2014 was $183,154 and $221,856, respectively.

Capital leases

The Company leases computer equipment, office furniture, and equipment under various capital leases. The leases expire at various dates through 2018. The leases require monthly principal and interest payments.