Operating Leases

9 Months Ended

Sep. 30, 2014

The Company currently leases office space of approximately 36,800 square feet at three locations, which in 2015 will be expanding to 42,200 square feet of office space. The following table summarizes the total lease and operating expenses for the three and nine months ended September 30, 2014 and 2013:



	September 30, 2014		September 30, 2013
Three Months Ended	$	225,368	$	177,310
Nine Months Ended	678,405		517,549

The approximate future minimum lease payments under the operating leases are as follows:



Future Minimum Lease Payments
Three Months Remaining In
2014		2015		2016		2017		2018		Thereafter		Total
$	167,000	$	694,000	$	693,000	$	693,000	$	629,000	$	3,544,000	$	6,420,000

The total approximate future minimum lease payments of $6.4 million include $294 thousand of obligations that will be reimbursed to the Company under an expense reimbursement agreement ("Expense Agreement") with a third party. Under the Expense Agreement, these amounts are required to be reimbursed to the Company by the third party. The obligation of the third party to reimburse the Company for these expenses survives the termination of the Expense Agreement.

In addition to the above lease payments, the Company is also responsible for normal operating expenses of the properties. Such operating expenses were approximately $245 thousand in 2013, on a combined basis, and are estimated to be approximately $334 thousand in 2014.

- 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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