Leases and Deferred Rent

12 Months Ended

Dec. 31, 2012

Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods. Rent expense, was $973 and $762 for the years ended December 31, 2012 and 2011, respectively.

We currently occupy a 31,000 square-foot facility in Salt Lake City, Utah under the terms of an operating lease expiring in May 2016 which supports our principal administrative, sales, marketing, customer support, and research and product development facility.

We occupy a 40,000 square-foot warehouse in Salt Lake City, Utah under the terms of an operating lease expiring in December 2017 which serves as our primary inventory fulfillment and repair center. Our earlier lease for the 24,000 square-foot warehouse in Salt Lake City terminated in January 2012.

We currently lease a warehouse measuring approximately 5,600 square-feet in Hong Kong under an operating lease that expires in February 2014. This warehouse is maintained to support our partners and customers located in the Asia-Pacific region.

We also occupy a 11,100 square-foot facility in Austin, Texas under the terms of an operating lease expiring in August 2016, which serves as an additional facility to support our administrative, sales, marketing, customer support, and research and development activities.

We currently lease two facilities in Israel - a 4,700 square foot office facility in Hod Hasharon to primarily support our research and development activities and a 1,000 square foot warehouse in Tzur Yigal. The Hod Hasharon lease expires in December 2013, with options to extend from two to six years. The Tzur Yigal lease expires in August 2013.

Future minimum lease payments under non-cancellable operating leases with initial terms of one year or more are as follows:



Years ending December, 31,
2013	$	942
2014	909
2015	939
2016	575
2017	254
Thereafter	170
Total minimum lease payments	$	3,789

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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