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Office Relocation
3 Months Ended
Mar. 31, 2015
Office Relocation [Abstract]  
Office Relocation

NOTE 13:

OFFICE RELOCATION

In February 2015, the Company entered into an agreement to terminate the lease for its corporate headquarters in Philadelphia, PA. As part of this agreement, the Company is entitled to receive a payment of $1.5 million as long as the Company vacates the facility by May 18, 2015. If the Company vacates the facility at a later date, it will forego $250,000 of the termination payment. In connection with the lease termination, the Company has recognized other income of $1.5 million during the three months ended March 31, 2015 in the statement of operations. The Company will depreciate the remaining net book value of the leasehold improvements and furniture and fixtures associated with the old headquarters, and recognize the remaining deferred rent liability through the expected move date of May 18, 2015. The statement of operations includes accelerated depreciation of $0.4 million reported in depreciation and amortization as well as accelerated deferred rent of $0.2 million reported in selling, general and administration expenses in the UC Segment. At March 31, 2015, the Company had leasehold improvements and furniture and fixtures with a net book value of $0.4 million and deferred rent of $0.2 million recognized in the balance sheet related to this leased facility. These amounts will be reported in depreciation and amortization and selling, general and administration expenses, respectively, in the UC Segment during the second quarter 2015.

In connection with the lease termination, the Company entered into a lease for a new corporate headquarters in Philadelphia, PA dated February 27, 2015. The terms of the lease are for 10 full years with minimum rental payments of $0.4 million for the first full twelve month period, escalating by 2.5% each year thereafter. The first full twelve month period is expected to begin on June 1, 2015 since the Company is expected to begin operating from the new location on May 18, 2015. Per the agreement, the Company will pay a per diem rate from the date it begins operating from the new location until the first day of the first full month.