13. Commitments and contingencies

As at December 31, 2017, the Company has obligations to make future minimum payments with respect to operating leases for office space.

The Company has a lease agreement for approximately 10,946 square feet of office space in Canada which commenced on November 1, 2016 and expires October 31, 2021, with the option to extend the lease to October 31, 2026. On December 22, 2016, the Company signed a lease agreement for an additional 2,500 square feet of office space in Canada. The lease for the additional 2,500 square feet expires June 30, 2019. In addition to the basic rent, the Company is obligated to pay for taxes, operating costs, utilities, additional services and other amounts. These leases are denominated in Canadian dollars and are included in the table below at their U.S. dollar equivalent.

The Company has a lease agreement for approximately 3,520 square feet of office space in San Bruno, California which commenced on January 1, 2016 and expires on December 31, 2018. On January 7, 2017, the Company signed a lease agreement to expand the San Bruno, California office space by an additional 6,019 square feet which is effective February 1, 2017 and expires December 31, 2018. In addition to the basic rent, the Company is obligated to pay for taxes, operating costs, utilities, additional services and other amounts.

The lease agreements contain scheduled rent increases, rent holidays and tenant improvement allowance. As such, the Company has recorded a deferred rent liability of $0.5 million as at December 31, 2017.

The minimum lease payments under the non-cancelable operating leases are payable in the following amounts over the following years.


	2018		2019		2020		2021		Total
Operating lease obligations	$	883	$	403	$	375	$	312	$	1,973

	$883		$403		$375		$312		$1,973

During the years ended December 31, 2017, 2016 and 2015, the Company incurred operating lease costs of $0.7 million, $0.4 million and $0.2 million, respectively.

In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims. Although the Company cannot predict with assurance the outcome of any litigation, it does not believe there are currently any such actions that, if resolved unfavorable, would have a material impact on the Company’s financial condition, results of operations or cash flows.