(9) CAPITAL LEASES AND OTHER OBLIGATIONS

On October 20, 2017 the Company entered into a sublease agreement with CSG Systems Inc. for approximately 41,715 square feet at 9555 Maroon Circle, Englewood CO 80112. The Term of the Sublease runs through June 30, 2023, with an option to extend for an additional two years through June 30, 2025. During the first year of the Sublease, the rent per square foot is $7.50, increasing to $19.75 during the second year of the Sublease and each year thereafter for the Initial Term increasing by an additional $1 per square foot. The Company is also obligated to pay its proportionate share of building operating expenses. The Sublandlord agreed to contribute approximately $0.2 million toward tenant improvements.

Our prior headquarters lease in Lone Tree, Colorado contained a termination clause which allowed the Company to terminate the lease at any time with three months written notice. We provided notice to the landlord at the end of October 2017.

We entered into a new month to month lease at our Lone Tree, Colorado location for warehouse and production space which will be transitioned to our new Englewood, Colorado location during the second quarter of 2018. The lease is for 12,494 rentable square feet at $26.50 per square foot and can be terminated at any time with thirty days’ notice. Termination notice was given on April 3, 2018.

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 2% to 10%. At March 31, 2018, the total recorded cost of assets under capital leases was approximately $0.5 million. Accumulated depreciation related to these assets totals approximately $0.4 million.

Future minimum commitments under non-cancelable operating leases and capital leases as of December 31, 2017 are as follows (in thousands):

	Operating Leases		Capital Leases
2018	$	463	$	125
2019		830		-
2020		873		-
2021		914		-
2022		956
Thereafter		495		-
Total minimum lease payments	$	4,531		125
Less: Amount representing interest				(2)
Principal balance of capital lease obligation				123
Less: Current portion of capital lease obligation				(123)
Long-term portion of capital lease obligation			$	-