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Commitments and Contingencies
12 Months Ended
Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 12—Commitments and Contingencies

Legal—In the normal course of business, the Company is at times subject to pending and threatened legal actions. In management’s opinion, any potential loss resulting from the resolution of these matters will not have a material effect on the results of operations, financial position or cash flows of the Company.

On August 30, 2018, Strata Skin Sciences, Inc. and Uri Geiger, a member of the board of directors of Strata Skin Sciences, Inc. (collectively “Strata”) filed an action against the Company in Pennsylvania State Court, Montgomery County (Civil Action No. 18-21421), requesting declaratory relief that: (1) Strata is not liable for tortious interference, defamation, libel, or unfair competition based on an e-mail by Mr. Geiger to an investment bank (the “Geiger Email”); (2) Strata made no actionable statements about the Company to such investment bank; (3) the Company cannot enforce the 2011 settlement and release agreement between the Company and PhotoMedex, Inc. (“Settlement Agreement”) against Strata; and (4) that any dispute regarding the Geiger Email does not relate to the Settlement Agreement. The action filed by Strata does not request any monetary damages. The Company believes that the action by Strata was filed as a response to a letter that the Company sent to Strata on August 22, 2018 demanding that Strata and Mr. Geiger cease and desist from making statements about alleged patent infringement and affirmatively retract the statements made in the Geiger Email.  The Company was served with the action on August 31, 2018, and responded with preliminary objections to the action on September 19, 2018. A hearing on the Company’s objections was scheduled for February 21, 2019 but has been delayed due to the unavailability of Strata’s lawyers on that date. We are awaiting a new date for the hearing to be scheduled. The Company believes that Strata’s action lacks merit, and plans to vigorously oppose the action on procedural and substantive grounds within the prescribed time limits.

Lease commitments—The Company has various noncancelable operating leases related to office spaces and manufacturing facilities in Carlsbad, California. In 2017, the Company entered into an operating lease for office space and manufacturing facilities and abandoned an existing lease. The Company recorded an expense and a corresponding liability of $0.2 million as a result of the lease abandonment. The expense was included in selling, general and administrative expenses in the statement of operations. In 2018, the Company re-occupied the abandoned facility. There was no liability outstanding at December 31, 2018.

Some of these agreements have escalating rent payment provisions. Rent expense under such agreements is recognized on a straight-line basis. Total rent expense for the years ended December 31, 2018 and 2017, was $0.4 million and $0.3 million, respectively.

Future minimum rental payments due are as follows (in thousands):

 

Years Ending December 31,

 

 

 

 

2019

 

$

500

 

2020

 

 

514

 

2021

 

 

528

 

2022

 

 

432

 

2023

 

 

445

 

Thereafter

 

 

1,918

 

Total

 

$

4,337