12. Capital Lease

The Company has a capital lease agreement for certain equipment. The lease bears annual imputed interest of 5.95% and requires monthly principal, interest, and sales tax payments of $0.04 million. Scheduled minimum annual payments as of June 30, 2018 are as follows (in thousands):


Year Ending December 31:
2018	$	232
2019		461
2020		461
2021		397
Total minimum obligations		1,551
Interest portion		(139)
Present value of net minimum payments		1,412
Less: current portion		(393)
Non-current portion	$	1,019