COMMITMENTS AND CONTINGENCIES

Operating Leases

We lease certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases expiring through 2023 under which we are responsible for related maintenance, taxes, and insurance. Future minimum non-cancellable lease commitments are as follows (in thousands):



For the year ending December 31,	Minimum Lease Commitments		Sublease Payments (1)		Net Lease Commitments
2019	$	1,177	$	399	$	778
2020	975		267		708
2021	804		134		670
2022	325		—		325
2023 & thereafter	16		—		16
Total contractual obligations	$	3,297	$	800	$	2,497

(1) Represents the amount of income expected from sublease agreements executed in 2017 for our former New York, New York and Arlington, Virginia offices.

Certain leases included above contain escalation clauses and, as such, rent expense was recorded on a straight-line basis over the term of the lease. Net rent expense from continuing operations was $0.8 million, $1.2 million, and $1.2 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Capital Leases

We lease certain equipment under a capital lease expiring in 2021. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are depreciated over the shorter of the related lease term or their estimated useful lives. At December 31, 2018, assets recorded under capital leases were $20 thousand and accumulated depreciation related to assets recorded under capital leases was $4 thousand. Depreciation of assets under capital leases is included in depreciation expense. The current portion of the capital lease obligation is included within the caption, “Accrued liabilities” and the long-term portion of the capital lease obligations is included within the caption, “Other liabilities” in the Consolidated Balance Sheets as of December 31, 2018.

Minimum future lease payments under capital leases as of December 31, 2018 are as follows (dollars in thousands):



	Minimum Lease
Year ending December 31,	Commitments
2019	$	4
2020	3
2021	3
2022	1
2023 & thereafter	—
Total minimum lease payments	11
Less: interest amount	(1		)
Present value of minimum lease payments	$	10

Purchase Commitments

As of December 31, 2018, we had approximately $2.8 million in outstanding purchase commitments for inventory, of which $1.5 million is expected to ship in the first quarter of 2019 and $0.8 million is expected to ship in the second quarter of 2019, with the remaining $0.5 million expected to ship in the second half of 2019.