Commitments and contingencies

6 Months Ended

Jun. 30, 2015

Commitments and contingencies

Commitments and contingencies

Note 14. Commitments and contingencies

Operating lease:  The Company leases its office space and manufacturing facility under an operating lease which expires in 2024. The Company accounts for rent expense on long-term operating leases on a straight-line basis over the life of the lease resulting in a deferred rent balance of $1,172,000 and $1,189,000 at June 30, 2015 and December 31, 2014, respectively. The Company is also liable for a share of operating expenses for the premises as defined in the lease agreement. The Company’s share of these operating expenses was $60,000 and $119,000 for the three and six months ended June 30, 2015, respectively, and $59,000 and $126,000 for the three and six months ended June 30, 2014, respectively. Rent expense, excluding the share of operating expenses, for the three and six months ended June 30, 2015 was $218,000 and $436,000, respectively, and $229,000 and $455,000 for the three and six months ended June 30, 2014, respectively.