COMMITMENT AND CONTINGENCIES

6 Months Ended

Jun. 30, 2014

COMMITMENT AND CONTINGENCIES

COMMITMENT AND CONTINGENCIES

NOTE 7—COMMITMENT AND CONTINGENCIES

In October 2013, we signed a lease for new office space for our corporate headquarters, and moved into the new location in the first quarter of 2014. The lease has a term of 38 months and a rental cost of approximately $5,412 per month, increasing 3% annually after the first fourteen months. In addition, our share of building operating costs are estimated to be $2,101 per month. In November 2013, we signed a lease for our satellite development office in Burlingame, CA. The lease has a two-year term, and rental costs of approximately $4,046 per month. In April 2014, we amended the lease associated with our corporate headquarters to add additional space which increase our rent to $8,286 per month beginning August 1, 2014 plus estimated monthly operating costs to be $2,201.

Rent expense related to our facilities for the period from January 1, 2013 to June 16, 2013 and the period from June 17, 2013 to June 30, 2013 was $22,338 and $0, respectively, and for the three and six months ended June 30, 2014, was $26,064 and $51,362, respectively.