Note 5. Operating leases, commitments and security deposit

Operating leases

In September 2011, the Company entered into a 39–month lease agreement for office space located in Harrison, New York, terminating on November 30, 2014. Under the agreement our total rental payments over the 39–month lease period are $240, inclusive of three months of free rent and a refundable rental deposit of $39, held in a restricted cash account.

In May 2013, the Company assumed a 24–month lease agreement for office space located in Saratoga Springs, New York terminating on October 31, 2014. Under the agreement our total rental payments over the lease period are $2, and a security deposit of $2.

In January 2014, the Company entered into a six–month lease agreement for temporary office space due to the Avcom acquisition located in New York, NY, terminating on June 30, 2014. Under the agreement our total rental payments over the lease period are $3, and a security deposit of $3.

The following is a schedule of the future minimum payments required under operating leases in the aggregate and for each subsequent year through lease maturity:

Year ending
2014	$	75
2015		–
Total	$	75

Total lease rental expense for the three months ended March 31, 2014, and 2013, were $30 and $17, respectively.

Commitments

DFS agreement

On April 24, 2014, the Company, through its subsidiaries FanTD and MGT Sports, entered into a six month Amended and Restated Consulting Agreement with DFS Consultants LLC (the “Consultants”), giving effect as of March 5, 2014.

In exchange for expert promotional and site design services, the Company agreed to provide the following compensation to the Consultant:

On the date hereof (subject to receipt of the applicable deliveries by the Consultant): MGT Capital shall issue to the Consultant a warrant to purchase 100,000 shares of common stock.

Each month, MGT Capital shall issue to the Consultant 5,000 shares of MGT Common Stock, payable monthly in arrears.

As of March 31, 2014, neither issuance has been made because the Company has not received NYSE market approval for the issuances. As of March 31, 2014, the Company has accrued $9 for the services.