Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

In March 2014, the Company entered into an office lease (the "Lease") with a publicly owned real estate investment trust, located in Plymouth Meeting, Pennsylvania. The Company occupied the new space in June 2014. The initial term of the Lease is 11.5 years and the Company plans to use the facility for office purposes.

The base rent adjusts periodically throughout the 11.5 year term of the Lease, with monthly payments ranging from $0 to $58,000. In addition, the Company will pay the landlord its share of operating expenses and a property management fee and has paid a security deposit of $49,000. The Company has capitalized $933,000 of tenant improvements within fixed assets on the condensed consolidated balance sheet and has recorded a corresponding increase to deferred rent.

In July 2015, the Company amended the lease for its headquarters in Plymouth Meeting, Pennsylvania to increase the total leased space. The commencement of the amended lease is estimated to be in the first quarter of 2016 and will increase monthly lease payments by approximately $16,000.

In August 2015 the Company entered into a sublease for its previous facility and completely vacated the premises. The Company has recorded a cease-use accrual of $80,000 as of September 30, 2015.

In June 2015, the Company amended the lease for its corporate office in San Diego, California to increase the total leased space and occupy the entire building. The amendment requires the lessor to complete and pay for certain improvements to the additional space before the commencement of the amended lease which is estimated to be in the fourth quarter of 2015. The amended lease will increase monthly lease payments by approximately $13,000. The Company has capitalized $187,000 of tenant improvements within fixed assets on the condensed consolidated balance sheet related to this additional space, and has recorded a corresponding increase to deferred rent.

The Company's future minimum lease payments under all non-cancelable operating leases as of September 30, 2015 are as follows:



Remainder of 2015	$	201,000
2016	1,573,000
2017	1,684,000
2018	1,655,000
2019	1,884,000
2020	1,932,000
Thereafter	9,732,000
Total	$	18,661,000

In the normal course of business, the Company is a party to a variety of agreements pursuant to which they may be obligated to indemnify the other party. It is not possible to predict the maximum potential amount of future payments under these types of agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these types of agreements have not had a material effect on our business, consolidated results of operations or financial condition.