In February 2013, we entered into a lease agreement to lease facilities in Denver, Colorado that house our corporate headquarters and all of our manufacturing and warehouse operations. The lease agreement had an initial term of three years, with options to extend the term for two additional terms of three years each. In February 2016, we exercised our first option to extend the term for three years, and in March 2016, we entered into an expansion lease agreement for additional warehouse space that connects to our current warehouse and has an initial term that expires with our existing facility lease agreement. In January 2019, we exercised our second option to extend the term of our lease agreement for an additional three years for our corporate headquarters and manufacturing and warehouse operations. Future minimum lease payments under the extension of our second option are reflected herein.

Annual rental expense for leased facilities was $1,081 and $1,130 for 2018 and 2017, respectively.

We have entered into various operating lease agreements, primarily for office equipment. Annual rental expense under these leases totaled $60 and $48 in 2018 and 2017, respectively.

2019	$	1,022
2020		1,041
2021		1,062
2022		88
	$	3,213

We are subject to lawsuits from time to time in the ordinary course of business. While we expect those lawsuits not to have a material effect on us, an adverse development in any such lawsuit or the insurance coverage for a lawsuit could materially and adversely affect our financial condition and cash flow. We regularly review all pending litigation matters in which we might be involved and establish accruals deemed appropriate by us for these litigation matters when a probable loss estimate can be made. As of December 31, 2018, there were no pending litigation matters that required an accrual.