Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies

9. Commitments and Contingencies

The Company leases office and warehouse space through operating leases. Some of the leases have renewal clauses, which range from three to five years. On December 19, 2011, RGS entered into a five year facility lease with Gaiam, for office space located in a Gaiam-owned building in Colorado. The lease commenced on January 1, 2012 and provides for monthly payment of approximately $21,832.

The following schedule represents the annual future minimum payments of all leases:

(in thousands)	At December 31, 2013
2014	$	747
2015		566
2016		200
Total minimum lease payments	$	1,513

The Company incurred rent expense of $1.3 million, $0.9 million and $0.5 million for the years ended December 31, 2013, 2012 and 2011, respectively.

The Company is subject to risks and uncertainties in the normal course of business, including legal proceedings; governmental regulation, such as the interpretation of tax and labor laws; and the seasonal nature of its business due to weather-related factors. The Company has accrued for probable and estimable costs that may be incurred with respect to identified risks and uncertainties based upon the facts and circumstances currently available. Due to uncertainties in the estimation process, actual costs could vary from the amounts accrued.