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

November

2024.

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

$316,000

and

$350,000

for the years ended

December

31,

2018

and

2017,

respectively.

Future minimum rental payments under these leases as of

December

31,

2018

are as follows (in thousands):

Year ending December 31,	Minimum Lease Payments
2019	$	284
2020		354
2021		358
2022 and thereafter		1,100
	$	2,096

We have capital lease obligations that consist primarily of computer equipment.

Future minimum payments under these leases as of

December

31,

2018

are as follows (in thousands):

Year ending December 31,	Capital Lease Obligations
2019	$	62
2020		45
2021		21
2022 and thereafter		—
		128
Less amounts representing interest		(6	)
	$	122

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

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,

2018.