Commitments and Contingencies

Operating Leases

We lease two facilities in Denver, CO and Oxnard, CA that are under operating leases through December 2018 and March 2020, respectively. Both of these leases require us to pay increases in real estate taxes, operating costs and repairs over certain base year amounts. Lease payments for the three and six months ended June 30, 2015 and 2014 were $69,000 and $195,000, respectively, and $154,000 and $319,000, respectively.

Future minimum rental commitments under all non-cancelable operating leases as of June 30, 2015, are as follows (in thousands):



Year Ending December 31,
Remaining 2015	$	149
2016	294
2017	301
2018	308
2019	88
2020	23
	$	1,163

For the year ended December 31, 2014 and through February 2015, the Company leased office space in New Jersey on a month-to-month basis. In March 2015, the Company terminated this lease. The Company recorded impairment losses of $134,000 relating to property and equipment, primarily consisting of furniture and leasehold improvements. In July 2015, the Company entered into a short-term lease in New Jersey for approximately $2,500 per month.

During the first quarter of 2014, the Company vacated its Pennsylvania office space and recorded an impairment charge of $225,000 representing the estimated net present value of the Company’s contractual obligation over the remaining lease term, adjusted for estimated sublease payments and other associated costs. The Company recorded impairment losses of $101,000 relating to property and equipment, primarily consisting of furniture and leasehold improvements. These charges are recorded in Impairment Charges on the Company’s condensed consolidated statements of operations for the six months ended June 30, 2014. In August 2014, the Company entered into a termination agreement relating to this lease. In exchange for the Company's termination payment of $150,000, paid in 2014, the Company was released from all future obligations under the lease.

Commercial Commitments

We have entered into a number of agreements with our suppliers to purchase communications and consulting services. Some of the agreements require a minimum amount of services to be purchased over the life of the agreement, or during a specified period of time. Glowpoint believes that it will meet its commercial commitments. Historically, in certain instances where Glowpoint did not meet the minimum commitments, no penalties for minimum commitments have been assessed and the Company has entered into new agreements. It has been our experience that the prices and terms of successor agreements are similar to those offered by other suppliers. Glowpoint does not believe that any loss contingency related to a potential shortfall should be recorded in the consolidated financial statements because it is not probable, from the information available and from prior experience, that Glowpoint has incurred a liability.

On July 23, 2015, UTC Associates Inc. (“UTC”) filed suit in the United States District Court for the Southern District of New York against the Company (UTC Associates Inc. v. Glowpoint Inc., Case 1:15-cv-05795). This matter involves claims whereby UTC has alleged that Glowpoint has failed to pay amounts allegedly due under a Technology Development & Operations Outsourcing arrangement dated June 30, 2010. UTC seeks monetary damages of $1,107,000 for amounts allegedly due and alleges an additional $1,000,000 in damages related to lost revenues. The Company believes these claims to be without merit and intends to vigorously defend itself and may pursue counterclaims against UTC.

Letters of Credit

As of June 30, 2015, the Company had an outstanding irrevocable standby letter of credit with Comerica Bank for $148,000 to serve as our security deposit for our lease of office space in Colorado. See Note 4.