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

April

2021.

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

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

$350,000

and

$415,000

for the years ended

December

31,

2017

and

2016,

respectively.

Future minimum rental payments under these leases as of

December

31,

2017

are as follows (in thousands):

Year ending December 31,	Minimum Lease Payments
201 8	$	321
201 9		305
2020		311
20 21 and thereafter		104
	$	1,041

We have other capital lease obligations that consist primaril

y of computer equipment.

Future minimum payments under these leases as of

December

31,

2017

are as follows (in thousands):

Year ending December 31,	Capital Lease Obligations
201 8	$	45
201 9		17
20 20		—
20 21 and thereafter		—
		62
Less am ounts representing interest		(1	)
	$	61

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 co

nsolidated financial position, operating results or cash flows. However, there can be

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,

2017