Commitments and contingencies

(a) Operating lease commitments

Effective October 10, 2018, the Company entered into a seven-year operating lease agreement for approximately 42,685 square feet of office space in New York City, with the option to extend through 2031. In connection with this lease agreement, the Company was required to establish and maintain a $1,480 cash collateral account, which is recorded in restricted cash on the consolidated balance sheets. Rent expense related to the new lease agreement is recorded on a straight-line basis beginning on the lease commencement date of November 8, 2018.

For the years ended December 31, 2018 and 2017, the Company recorded rent expense related to its current office locations of $1,596 and $1,728, respectively.

As of December 31, 2018, future minimum rental payments under noncancelable operating leases having initial or remaining lease terms of more than one year are as follows:



(In thousands)
Year	December 31, 2018
2019	$	1,543
2020	2,280
2021	2,282
2022	2,244
2023	2,390
2024 and thereafter	4,371
Total	$	15,110

(b) Capital lease commitments

In connection with the seven-year operating lease agreement discussed above, the Company obtained the right to use certain furniture, fixtures and office equipment (referred to as "Leased Capital Assets") already installed in the new office space in New York City. The Company determined that the Leased Capital Assets should be treated as a capital lease.

As of December 31, 2018, the Company has lease obligations of $747 related to the Leased Capital Assets. The Company's obligations under this capital lease agreement are as follows:



(In thousands)
Year	December 31, 2018
2018	$	101
2019	157
2020	157
2021	157
2022	169
Thereafter	312
Total minimum payments required	$	1,053
Amounts representing interest	306
Present value of net minimum payments	747
Less: Current maturities	101
Long-term payment obligations	$	646

The Company is not currently a party to any legal proceeding, investigation or claim which, in the opinion of management, is likely to have a material adverse effect on the business, financial condition, results of operations or cash flows. Legal fees associated with such legal proceedings are expensed as incurred. The Company reviews legal proceedings and claims on an ongoing basis and follows the appropriate accounting guidance, including ASC 450, when making accrual and disclosure decisions. The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and the Company discloses the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for the consolidated financial statements to not be misleading. To estimate whether a loss contingency should be accrued by a charge to income, the Company evaluates, among other factors, the probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of the loss. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated.

In addition, the Company may be involved in litigation from time to time in the ordinary course of business. It is the opinion of the Company's management that the ultimate resolution of any such matters currently pending will not have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. However, the results of such matters cannot be predicted with certainty and there can be no assurance that the ultimate resolution of any legal or administrative proceeding or dispute will not have a material adverse effect on the Company's business, financial condition, results of operations and cash flows.