OPERATING LEASES

12 Months Ended

Dec. 31, 2018

Note 10 – Operating Leases

The Company leases office space and equipment under operating leases expiring at various dates through 2019 and 2023. On August 13, 2016, the Company entered into a 7 year operating lease for an office space located in San Francisco, CA. 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,

2019	$	275,000
2020		257,000
2021		252,000
2022		259,000
2023		165,000
Thereafter		-

	$	1,208,000

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 $298,000, $308,000, and $307,000 for the years ended December 31, 2018, 2017 and 2016, 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, $0, and $76,000 for the years ended December 31, 2018, 2017 and 2016, 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.