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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2014
Commitments and Contingencies  
Commitments and Contingencies

 

7.Commitments and Contingencies.

 

Operating Leases.  The Company has an operating lease for its current facility that is in effect through February 2016. Rent expense under this lease, excluding operating costs, was approximately $445,000 in each of the years ended December 31, 2014 and 2013. During the year ended December 31, 2014, the Company abandoned a portion of its office space for the remaining lease term, which resulted in an expense of approximately $118,000, which was recorded as an accrued liability as of December 31, 2014.

 

Minimum future lease obligations under this lease, excluding operating costs, are approximately as follows for the years ending December 31:

 

2015

 

$
492,000 

 

2016

 
82,000 

 

 

Retailer and Licensing Agreements.  The Company has contracts in the normal course of business with various retailers and others, some of which provide for fixed or store-based payments rather than sign placement-based payments resulting in minimum commitments each year in order to maintain the agreements.  During the years ended December 31, 2014 and 2013, the Company incurred $2,585,000 and $1,914,000 of costs related to fixed and store-based payments, respectively. The amounts are recorded in cost of services in the Company’s statements of comprehensive income.

 

Aggregate commitment amounts under agreements with retailers and others are approximately as follows for the years ending December 31:

 

2015 

 

$
3,516,000 

 
2016 

 
3,384,000 

 
2017 

 
2,356,000 

 
2018 

 
1,181,000 

 
2019 

 
1,000,000 

 

Thereafter

 
2,000,000 

 

 

On an ongoing basis the Company negotiates renewals of various retailer agreements. Upon the completion of future contract renewals, the annual commitment amounts for 2015 and thereafter could be in excess of the amounts above.

 

Legal. The Company is subject to various legal matters in the normal course of business. Management believes the outcome of these matters will not have a material adverse effect on the Company’s financial position or results of operations.