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Commitments and Contingencies
12 Months Ended
Dec. 31, 2014
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, normally renewing for one year terms.

 

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 $394,000 and $387,000 for the years ended December 31, 2014 and 2013, respectively.

 

Future minimum rental payments under these leases as of December 31, 2014 are as follows (in thousands):

 

Year ending December 31,

 

Minimum
Lease Payments

 

2015

 

$

393 

 

2016

 

389 

 

2017

 

130 

 

2018 and thereafter

 

 

 

 

$

912 

 

 

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 payments under these leases as of December 31, 2014 are as follows (in thousands):

 

Year ending December 31,

 

Capital Lease
Obligations

 

2015

 

$

148

 

2016

 

111

 

2017

 

23

 

2018 and thereafter

 

 

 

 

282

 

Less amounts representing interest

 

(7

)

 

 

$

275

 

 

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, 2014.