Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

16 — COMMITMENTS AND CONTINGENCIES

Leases:

For the year ending December 31, 2018, the Company’s leasing arrangements gave rise to operating lease agreements for office space, deployment sites and storage warehouses, both domestically and internationally. The operating leases contain various lease terms and provisions with remaining lease commitments between 5 months and 6 years as of December 31, 2018. During the years ended December 31, 2018 and 2017, the Company sublet a portion of its space under operating leases at The Fairways and Hemel locations. The Company incurred rent expense aggregating to approximately $1,466,000 and 1,509,000, offset by sublet income of $146,000 and $112,000, for the years ended December 31, 2018 and 2017, respectively.

The table below lists location and lease expiration dates from 2019 through 2025:

Location	Lease End Date	Approximate Future Payments
Colchester, U.K. – The Fairways	Jun 2020	$	301,227
Colchester, U.K. – Waterside House	May 2025		1,673,513
Anaheim, CA	Jul 2021		79,068
Billerica, MA	May 2021		1,065,402
Hemel, UK	Oct 2020		333,293
Singapore	Aug 2020		55,021
Hackettstown, NJ	Apr 2020		122,302
Dubai, United Arab Emirates	Jun 2019		10,994
Sunrise, Florida	May 2019		40,275
Sublets:
Colchester, UK – The Fairways	Mar 2020	$	69,000
Hemel, UK	Oct 2020		167,000

The Company’s total obligation of minimum future annual rentals, exclusive of real estate taxes and related costs, is approximately as follows:

Year Ending December 31,	Amount
2019		1,299,000
2020		1,043,000
2021		469,000
2022		268,000
2023		268,000
Thereafter		335,000
	$	3,682,000
Sublets:
2019	$	146,000
2020		90,000
	$	236,000

Legal:

The Company is subject, from time to time, to claims by third parties under various legal theories. The defense of such claims, or any adverse outcome relating to any such claims, could have a material adverse effect on the Company’s liquidity, financial condition and cash flows. For the years ended December 31, 2018 and 2017, the Company did not have any material legal actions pending.

Delisting Notice:

On May 17, 2018 the Company, received a written notification from The Nasdaq Stock Market LLC (“NASDAQ”) indicating that the Company was not in compliance with NASDAQ Listing Rule 5550(a)(2) as Company’s closing bid price was below $1.00 per share for the previous 30 consecutive business days.

Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the Company was granted a 180-day compliance period, or until November 13, 2018, to regain compliance with the minimum bid price requirements. During the compliance period, the Company’s shares of common stock will continue to be listed and traded on NASDAQ.

The Company was afforded a second 180 calendar day grace period by NASDAQ to regain compliance with the minimum bid price requirements. If the Company does not regain compliance by May 13, 2019, NASDAQ will provide notice that the Company’s shares of common stock will be subject to delisting.

Pension:

The Company at its discretion may make matching contributions to the 401(k) plan its employees participate in. For the years ended December 31, 2018 and 2017, the Company made matching contributions of $27,000 and $67,000, respectively.

The Company currently operates a Group Personal Pension Plan in its U.K. subsidiary and funds are invested with Royal London. U.K. employees are entitled to join the plan to which the Company contributes varying amounts subject to status. In addition, the Company operates a stakeholder pension scheme in the U.K. For the years ended December 31, 2018 and 2017, the Company made matching contributions of $236,000 and $169,000, respectively.