Commitments and contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

13. Commitments and contingencies

As at December 31, 2016, the Company has obligations to make future minimum payments with respect to operating leases for office space.

The Company has a lease agreement for approximately 10,946 square feet of office space in Canada which commenced on November 1, 2016 and expires October 31, 2021, with the option to extend the lease to October 31, 2026. On December 22, 2016, the Company signed a lease agreement for an additional 2,500 square feet of office space in Canada. The lease for the additional 2,500 square feet expires June 30, 2019. In addition to the basic rent, the Company is obligated to pay for taxes, operating costs, utilities, additional services and other amounts.

The Company has a lease agreement for approximately 3,520 square feet of office space in San Bruno, California which commenced on January 1, 2016 and expires on December 31, 2018. In addition to the basic rent, the Company is obligated to pay for taxes, operating costs, utilities, additional services and other amounts.

The lease agreements contain scheduled rent increases, rent holidays and tenant improvement allowance. As such, the Company has recorded a deferred rent liability of $150 as at December 31, 2016.

The minimum lease payments under the non-cancelable operating leases are payable in the following amounts over the following years.


	2017		2018		2019		2020		2021		Total
Operating lease obligations (1)	$	559	$	569	$	377	$	350	$	292	$	2,147

	$	559	$	569	$	377	$	350	$	292	$	2,147

1.	The dollar amounts shown in these columns reflect the U.S. dollar equivalent of the Canadian operating lease obligations, discussed above. The amounts were converted to U.S. dollars from CAD dollars using the December 31, 2016 daily noon exchange rate of US$0.7448.

On January 7, 2017, the Company signed a lease agreement to expand the San Bruno, California office space by an additional 6,019 square feet which is effective February 1, 2017 and expires December 31, 2018. The Company will be obligated to pay approximately $203 in annual basic rent for the first year and approximately $278 in the second year. In addition to the basic rent, the Company will be obligated to pay for taxes, operating costs, utilities, additional services and other amounts. The operating lease obligation related to this office lease agreement is not included in the table above as the agreement was signed after December 31, 2016.

During the years ended December 31, 2016, 2015 and 2014, the Company incurred operating lease costs of $370, $154 and $188 (2014—net of sublease rentals of $127), respectively.

In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims. Although the Company cannot predict with assurance the outcome of any litigation, it does not believe there are currently any such actions that, if resolved unfavorable, would have a material impact on the Company’s financial condition, results of operations or cash flows.