Note 10 – Operating Leases

The Company leases office space and equipment under operating leases expiring at various dates through 2018 and 2022. On August 13, 2016, the Company entered into a 7 year operating lease for an office space located in San Francisco, CA. The commencement date of the new lease coincided with the termination of the Company’s existing lease space. The Company also has a satellite office in Fairfield, CA with a lease expiration date in April 2020.

Future minimum payments under non-cancelable operating leases, net of expected sublease income, having initial terms of more than one year consisted of the following:

Year ending December 31,

2018	$	266,000
2019		272,000
2020		245,000
2021		252,000
2022		259,000
Thereafter		165,000

	$	1,459,000

Payments for repair and maintenance agreements incorporated in operating lease agreements are not included in the future minimum operating lease payments shown above.

Net rent expense was $308,000, $307,000, and $175,000 for the years ended December 31, 2017, 2016 and 2015, respectively, and includes the above operating leases as well as month-to-month rental and certain executory costs.

Total rent expense was recognized net of sublease income of $0, $76,000, and $191,000 for the years ended December 31, 2017, 2016 and 2015, respectively. In 2013, the Company subleased a portion of its existing office space through the remainder of its lease term at a rate lower than its lease rate, resulting in a cumulative loss of $115,000. This loss was amortized against total rent expense over the term of the sublease and it is included in total rent expense for 2016.