Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

Commitments and Contingencies

4. Commitments and Contingencies

Leases

We lease office space for our corporate headquarters in Richardson, Texas under an operating lease, the base term of which expires in December 2017.  We lease office space in San Diego, California for a portion of our security software research and development staff under two separate operating leases that expire in March 2014.

The Company’s lease for the headquarters facility contains escalation provisions.  The Company records rent expense on facility leases on a straight-line basis.  Rent expense totaled approximately $339,000 and $341,000 for the years ended December 31, 2012 and 2011, respectively.

We have other capital lease obligations that consist primarily of obligations to purchase goods that are enforceable and legally binding.  Our obligations primarily relate to software licensing and computer equipment.

Future minimum lease obligations consisted of the following at December 31, 2012 (in thousands):

	Operating		Capital Lease
Year ending December 31,	Leases		Obligations		Total
2013	$	403	$	112	$	515
2014	398		89		487
2015	389		28		417
2016	389		—		389
2017 and thereafter	130		—		130
	$	1,709	$	229	$	1,938

Legal Proceedings

We are subject to legal proceedings and claims that arise in the ordinary course of business. We do not believe that the outcome of those matters will have a material adverse affect on our consolidated financial position, operating results or cash flows. However, there can be no assurance such legal proceedings will not have a material impact.

We are not aware of any material claims outstanding or pending against Intrusion Inc. at December 31, 2012.