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Commitments and Contingencies
9 Months Ended
Sep. 30, 2020
Commitments and Contingencies

4. Commitments and contingencies

As of September 30, 2020, the Company has no commitments and contingencies.

QL Holdings LLC and Subsidiaries  
Commitments and Contingencies

9. Commitments and contingencies

Operating leases

The Company is obligated under certain non-cancellable operating leases for its facilities, which expire on various dates through 2027. Certain facility leases contain predetermined fixed escalation of minimum rents.

The Company recognizes rent expense on a straight-line basis for these leases and records the difference between recognized rental expense and the amounts payable under the lease agreement as deferred rent. The deferred rent liability was $0.4 million and $0.4 million as of September 30, 2020 and December 31, 2019, respectively. Total rental expense amounted to $0.1 million and $0.5 million, and $0.1 million and $0.4 million for the three and nine months ended September 30, 2020 and 2019, respectively, and is recorded in operating expenses in the condensed consolidated statements of operations.

Future minimum lease payments under the non-cancellable leases are as follows:

 

(in thousands)

 

Rent

payments

 

Nine Months Ended September 30,

 

 

 

 

2020–Remaining Period

 

$

132

 

2021

 

 

539

 

2022

 

 

555

 

2023

 

 

572

 

2024

 

 

598

 

Thereafter

 

 

1,173

 

Total

 

$

3,569

 

 

Litigation

The Company is subject to certain legal proceedings and claims that arise in the normal course of business. In the opinion of management, the Company does not believe that the amount of liability, if any, as a result of these proceedings and claims will have a materially adverse effect on the Company’s consolidated financial position, results of operations, and cash flows. As of September 30, 2020 and December 31, 2019, the Company does not have any contingency reserves established for any litigation liabilities.