Note 14. Commitments and Contingencies

Leases

The Company has entered into non-cancellable operating leases, primarily related to rental of office space and certain office equipment. Certain lease agreements include rent payment escalation clauses and free rent (rent holidays). The total amount of base rentals over the term of the leases is charged to expense using the straight-line method with the amount of the rental expense in excess of lease payments recorded as a deferred rent liability. In May 2018, the Company amended its office lease in North Carolina by adding an additional 4,000 square feet and extending the term of the lease to 2025. Future minimum payments under non-cancellable operating and capital lease agreements as of September 30, 2018 were as follows (in thousands):

Years Ending December 31,		Operating Leases		Capital Leases
Remainder of 2018		$	1,203	$	9
	2019		4,647		33
	2020		3,884		33
	2021		4,109		33
	2022		5,097		33
Thereafter			1,149		—
Total Minimum Lease Payments		$	20,089	$	141
Less amounts representing interest					(13	)
Present value of capital lease obligations					128
Less: Current portion					(25	)
Long-term portion of capital lease obligations				$	103

Other Commitments

The Company has entered into certain other non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. There have been no material changes for commitments compared to those discussed in Note 11 of the notes to the consolidated financial statements as disclosed in the Company’s Form 10-K.

Legal Matters

From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Although claims are inherently unpredictable, the Company is currently not aware of any matters that may have a material adverse effect on the Company’s business, financial position, results of operations or cash flows, individually or in the aggregate.