Note 7 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note

7

– Commitments and Contingencies

We lease premises and equipment under operating leases having terms from month-to-month to

5

years. At

December 31, 2017,

future minimum lease payments under leases having an initial or remaining non-cancellable lease term in excess of

one

year including known escalation clauses are as set forth in this table below (in $

’000

):

Year
201 8	$	698
2019		722
2020		776
2021		800
2022		190
Total	$	3,186

For the years ended

December 31, 2017

and

2016,

rent expense included in selling, general and administrative expenses for operating leases was $

0.3

million and

$0.5

million, respectively. For the years ended

December 31, 2017

and

2016,

rent expense included in cost of revenue for operating leases was

$0.7

million and

$0.4

million, respectively.

In the normal course of business, we issue binding purchase orders to subcontractors and equipment suppliers. At

December 31, 2017,

these open purchase order commitments amount to approximately

$0.5

million. The majority of services delivered and equipment received is expected to be satisfied during the

first

six

months of

2018

at which time these commitments will be fulfilled.

From time to time,

we are involved in various legal matters and proceedings concerning matters arising in the ordinary course of business. We currently estimate that a material adverse effect on our financial position, results of operations and cash flows from such matters is

not

reasonably likely.