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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2013
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

5. Commitments and Contingencies

Contractual Obligations

The Company has entered into obligations under operating leases with initial non-cancelable terms in excess of one year for office space, telephone, and data services. Expenses recorded under these agreements for the three months ended June 30, 2013 and 2012 were approximately $368 and $348, respectively and for the six months ended June 30, 2012 and 2013 were approximately $730 and $636 respectively.

Future minimum lease payments with respect to non-cancelable operating leases at June 30, 2013 are approximately as follows:

 

Remainder of 2013

    $ 685   

2014

      184   

2015

      32   

2016 and thereafter

      3   
  

 

 

  

Total

    $ 904   
  

 

 

  

The Company’s office lease expires in January 2014 and it anticipates entering into a new 16 year lease agreement in August 2013.

Letter of Credit

The Company collateralizes its office lease through a standby letter of credit of $419 as of June 30, 2013.

Contingencies

The Company is subject to various routine regulatory reviews and inspections by the SEC as well as legal proceedings arising in the ordinary course of business. The Company is not currently party to any litigation or other legal proceedings that are expected to have a material impact on our business, financial position, results of operations, or cash flows.

In December 2011, Research Affiliates LLC filed a patent infringement lawsuit against the Company. In November 2012, Research Affiliates withdrew its lawsuit and entered into a settlement agreement with the Company. The Company’s insurance carrier funded a significant majority of the cost of defending this patent infringement lawsuit. The Company incurred litigation expense of $(191) and $481, net of insurance reimbursement, in the three and six months ended June 30, 2012.