Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Operating Leases

We lease several facilities under operating leases expiring through 2017. Certain leases require us to pay increases in real estate taxes, operating costs and repairs over certain base year amounts. Lease payments for the three months ended March 31, 2013 and 2012 were $191,000 and $128,000, respectively.

Future minimum rental commitments under all non-cancelable operating leases as of March 31, 2013, are as follows (in thousands):

Year Ending December 31,
Nine months of 2013	459
2014	167
2015	140
2016	145
2017	87
	$	998

Capital Lease Obligation

In 2012, the Company entered into three non-cancelable lease agreements for $90,000, $30,000 and $48,000 with interest rates of 9%, 3% and 0%, respectively. In 2011, the Company entered into two non-cancelable lease agreements for $512,000 and $40,000 with interest rates of 6% and 0%, respectively. These leases are accounted for as capital leases. Depreciation expense on the equipment under the capital leases for the three months ended March 31, 2013 and 2012 was $40,000 and $29,000, respectively. Future minimum commitments under all non-cancelable capital leases as of March 31, 2013, are as follows (in thousands):

Year Ended December 31,	Total		Interest		Principal
Nine months of 2013	194		13		181
2014	210		6		204
2015	27		—		27
	$	431	$	19	$	412

The current portion of the capital lease obligation is $243,000 and the long-term portion is $169,000 at March 31, 2013.

Commercial Commitments

We have entered into a number of agreements with telecommunications companies to purchase communications services. Some of the agreements require a minimum amount of services to be purchased over the life of the agreement, or during a specified period of time.

Glowpoint believes that it will meet its commercial commitments. In certain instances where Glowpoint did not meet the minimum commitments, no penalties for minimum commitments have been assessed and the Company has entered into new agreements. It has been our experience that the prices and terms of successor agreements are similar to those offered by other carriers.

Glowpoint does not believe that any loss contingency related to a potential shortfall should be recorded in the condensed consolidated financial statements because it is not probable, from the information available and from prior experience, that Glowpoint has incurred a liability.

Letter of Credit

As of March 31, 2013, the Company has an outstanding irrevocable standby letter of credit (the “LOC”) with Comerica Bank for $115,000 to secure our security deposit for the sublease of our corporate headquarters.