CAPITAL LEASES AND OTHER OBLIGATIONS

12 Months Ended

Dec. 31, 2016

(9) CAPITAL LEASES AND OTHER OBLIGATIONS

The Company had previously entered into a Lease Termination Agreement (“LTA”) and new Lease Agreement (“LA”) with its landlord relating to the Company’s headquarters location in Lone Tree, Colorado, under which the Company reduced the amount of space leased at its headquarters. Subsequently, on August 12, 2016, the Company entered into an amended Lease Agreement to extend and amend the terms and conditions of the LA.

The following is a summary of the key terms of the LA, as amended:

The original term of the LA term was extended by two years and as amended is to end, unless sooner terminated, on December 31, 2018;

Fixed rental payments were decreased from $49 to $38 per month; and

The Company and landlord shall each have the right to terminate the lease at any time, without liability to the other, with ninety days (originally six months) prior written notice to the Company and ninety days written notice to the Landlord.

The Company also leases certain equipment under capital leases which expire on various dates through 2018. Imputed interest rates on the leases range from approximately 5% to 10%. At December 31, 2016 and 2015, the total recorded cost of assets under capital leases was $254 and $461, and the accumulated depreciation related to these assets totaled $287 and $195, respectively.

The Company entered into a settlement agreement with a vendor and note payable agreement with a former employee totaling $187 included in accounts payable with interest rates ranging from 15% to 18% annually. As of December 31, 2016, future minimum lease payments under non-cancelable notes payable, operating and capital leases are as follows:

	Capital		Operating
	Leases		Leases
2017	$	118	$	457
2018		136		457
2019		—		—
2020		—		—
Thereafter		—		—
Total future minimum lease payments		254	$	914
Less current portion		(118)
Notes payable and other obligations	$	136

Rent expense under all operating leases for 2016 and 2015 was approximately $457 and $598, respectively.