9. Commitments and Contingencies

Operating Leases

The Company leases office space under operating leases that expire between 2017 and 2020.

Future minimum lease payments under operating and capital lease obligations are as follows (in thousands):



	Capital Leases			Operating Leases		Purchase Commitments
2017	$	1,644		$	1,182	$	2,471
2018	1,249			900		—
2019	628			916		—
2020	78			259		—
2021	—			—		—
Thereafter	—			—		—
Total minimum lease payments	3,599			$	3,257	$	2,471
Less amount representing interest	(418		)
Present value of capital lease obligations	3,181
Less current portion of capital lease obligations	(1,644		)
Long-term capital lease obligations	$	1,537

The Company has an outstanding purchase commitment in 2017 for software development services from DevFactory FZ-LLC pursuant to a technology services agreement in the amount of $2.5 million. The agreement has an initial term that expires on December 31, 2017, with an option for either party to renew annually for up to five years. For years after 2017, the purchase commitment amount for software development services will be equal to the prior year purchase commitment increased (decreased) by the percentage change in total revenue for the prior year as compared to the preceding year. For example, if 2017 total revenues increase by 10% as compared to 2016 total revenues, then the 2018 purchase commitment will increase by approximately $250,000 from the 2017 purchase commitment amount to approximately $2.8 million.

Total rent expense for the years ended December 31, 2016, 2015, and 2014 were approximately $2.1 million, $2.1 million, and $1.9 million, respectively. In 2017, we have subleased two of our operating leases and will receive sublease income of $231,000 which offsets operating lease obligations shown above. Both the underlying sublease and the associated operating leases end during 2017. The current and long-term portion of capital lease obligations are recorded in other current liabilities and other long-term liabilities line items on the balance sheet, respectively. Capital lease agreements are generally for four years and contain a bargain purchase option at the end of the lease term.

Litigation

In the normal course of business, the Company may become involved in various lawsuits and legal proceedings. While the ultimate results of these matters cannot be predicted with certainty, management does not expect them to have a material adverse effect on the consolidated financial position or results of operations of the Company.