COMMITMENT AND CONTINGENCIES

9 Months Ended

Sep. 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 increased our rent to $8,286 per month beginning August 1, 2014 plus estimated monthly operating costs of $2,201.

Rent expense related to our facilities for the three months ended September 30, 2013, and for the period January 1, 2013 to June 16, 2013 and the period June 17, 2013 to September 30, 2013 was $11,168, $20,477, and $13,030, respectively, and for the three and nine months ended September 30, 2014, was $37,462 and $88,824, respectively.