Subsequent Event |
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Jun. 30, 2015 | ||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | ||||||||||||||||||||||||||||||||||||||
Subsequent Event |
New Lease Agreement On July 6, 2015, the Company entered into a new office lease (the “New Lease”) with Hudson 333 Twin Dolphin Plaza, LLC (the “Landlord”) to lease approximately 27,532 square feet of office space located in Redwood City, California (the “Premises”) for the Company’s new corporate headquarters. The Company currently leases office space located in Redwood City, California, pursuant to a lease dated September 26, 2011 (as amended, the “Current Lease”), which expires pursuant to the terms described below under “Amendment to Current Lease.” The New Lease commences on the earlier of (i) the first date on which Tenant conducts business in the Premises, or (ii) the later of (a) October 22, 2015, or (b) the date on which the Landlord substantially completes certain improvements to the Premises (the “Commencement Date”). The New Lease terminates on the last day of the calendar month following the date that is 84 months after the Commencement Date (the “Lease Term”), unless terminated earlier. The New Lease provides for annual base rent of approximately $1.6 million in the first year of the Lease Term, which increases on an annual basis up to approximately $1.9 million for the final year of the Lease Term. The New Lease also provides for certain limited rent abatements in the second year of the Lease Term. The Company will be entitled to a one-time improvement allowance of approximately $1.2 million for costs related to the design and construction of Company improvements that are permanently affixed to the Premises. See the future minimum lease payment schedule for all facility leases below. In addition, the Company obtained a standby letter of credit (the “Letter of Credit”) in an amount of approximately $0.8 million, which may be drawn down by the Landlord to be applied for certain purposes upon the Company’s breach of any provisions under the New Lease. Provided that no default occurs under the terms of the New Lease, the Company will be entitled to periodically reduce the amount of the Letter of Credit down to a maximum of approximately $0.3 million as of the last day of the sixtieth full calendar month of the Lease Term. Amendment to Current Lease On July 6, 2015, the Company entered into the Seventh Amendment to the Current Lease (the “Seventh Amendment”) with its current landlord. The Seventh Amendment provides for early termination of the Current Lease effective on the later of October 25, 2015 or the date three business days after the Commencement Date of the New Lease. The Company will not be required to pay the landlord a termination payment in connection with the early termination of the lease. Prior to the execution of the Seventh Amendment, the Current Lease had been scheduled to expire on April 30, 2017. The future minimum lease payments for all the Company’s facility leases as of July 6, 2015 are approximately as follows (in thousands):
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