XML 63 R15.htm IDEA: XBRL DOCUMENT v2.4.1.9
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2014
Commitments and Contingencies  
Commitments and Contingencies

7. Commitments and Contingencies

Although we may be involved from time to time in litigation incidental to our business, we are not currently aware of any ongoing, pending or threatened litigation which would have a material adverse effect on our financial position, results of operations and cash flows. However, unforeseen litigation may be initiated by us or by third parties. Such litigation could adversely affect our business, financial position and results of operations and divert our attention and resources from other matters.

In 2009, we purchased certain computer equipment under a three‑year capital lease. Total payments due under the capital lease are listed below.

In 2011, we entered into an agreement with its landlord to amend the terms of its existing facility lease in Monrovia, California. The new lease extends the term of the lease from January 2012 to April 2015 and provides for a new rent payment schedule. In January 2015, we entered into a new lease agreement for the Monrovia property the new lease replaces the previous lease and extends our lease term to June 2020 with an option to renew for an additional five year. The new lease is a non‑cancelable operating lease. We are responsible for other lease related costs such as personal property taxes, insurance, maintenance and utilities.

In May 2014 we entered into a lease for office space in San Diego, California. The lease term is for 26 months with an option to renew for an additional year. The total payments under the lease are approximately $200,000.

Future minimum payments under the non‑cancelable operating and capital leases consist of the following at December 31, 2014 (in thousands):

 

 

 

 

 

 

 

 

 

 

    

Capital

 

 

 

 

 

 

Equipment

 

Operating

 

Years ending December 31,

 

Lease

 

Leases

 

2015

 

$
2 

 

$
398 

 

2016

 

 

—

 

 
598 

 

2017

 

 

—

 

 
547 

 

2018

 

 

—

 

 
564 

 

2019

 

 

—

 

 
581 

 

Thereafter

 

 

—

 

 
299 

 

Total

 

$
2 

 

$
2,987 

 

Net rent expense for the years ended December 31, 2014 and 2013 was $597,000 and $547,000 respectively.

Guarantees

In the normal course of business, we indemnify certain employees and other parties, such as collaboration partners and other parties that perform certain work on behalf of, or for the Company or take licenses to our technologies. hawse have agreed to hold these parties harmless against losses arising from our breach of representations or covenants, intellectual property infringement or other claims made against these parties in performance of their work with us.

These agreements typically limit the time within which the party may seek indemnification by us and the amount of the claim. It is not possible to prospectively determine the maximum potential amount of liability under these indemnification agreements since we have not had any prior indemnification claims on which to base the calculation. Further, each potential claim would be based on the unique facts and circumstances of the claim and the particular provisions of each agreement. We are not aware of any potential claims and did not record a liability as of December 31, 2014 and 2013.