Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

11. Commitments and Contingencies

In the normal course of business, the Company is subjected to various claims, legal actions, contract negotiations and disputes. The Company provides for losses, if any, in the year in which they can be reasonably estimated. In management’s opinion, there are currently no such matters outstanding that would have a material effect on the accompanying consolidated financial statements.

Operating Leases

The Company leases equipment under operating leases which expire at various dates through February 2022.

The Company’s future minimum payments under non-cancelable operating leases are as follows:


Year Ending December 31,	Amount
2017 (remainder of)	$	108
2018		142
2019		61
2020		20
2021 and thereafter		9
Total minimum lease payments	$	340

Other Commitments

In the normal course of business, the Company has certain short-term purchase obligations and commitments for products and services, primarily related to purchases of materials used in the manufacturing of its systems. At March 31, 2017 Solaris LLC had commitments of approximately $11.0 million.

The Company has executed a guarantee of lease agreement with Solaris Energy Management, LLC, a related party of the Company, related to the rental of office space for the Company’s corporate headquarters. The total future guaranty is $2.7 million as of March 31. 2017. Refer to Note 12 for additional information regarding related party transactions recognized.