Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

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 and San Marcos, California for a portion of our security software research and development staff under two separate operating leases. The California leases normally renew for one to two 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 $384,000 and $394,000 for the years ended December 31, 2015 and 2014, respectively.

Future minimum rental payments under these leases as of December 31, 2015 are as follows (in thousands):

Year ending December 31,	Minimum Lease Payments
2016	$	409
2017	133
2018 and thereafter	—

	$	542

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 computer equipment.

Future minimum payments under these leases as of December 31, 2015 are as follows (in thousands):

Year ending December 31,	Capital Lease Obligations
2016	$	211
2017	122
2018	22
2019 and thereafter	—

	355

Less amounts representing interest	(19		)

	$	336

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 effect 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, 2015.