Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.20.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Leases
The Company is obligated under finance leases covering certain IT equipment that expire at various dates over the next three years. The Company also has non-cancellable operating leases, primarily for office space, that expire at various dates over the next four years. The Company has two leases that each contain a renewal option for a period of five years. Because the Company is not reasonably certain to exercise this option, the option is not considered in determining the lease term.
The components of lease cost were as follows (in thousands):
 
Three Months Ended
 March 31,
 
2020
 
2019
Operating lease cost
$
96

 
$
193

Finance lease cost:
 
 
 
Amortization of right of use assets
31

 
13

Interest on lease liabilities
2

 
2

Total finance cost
33

 
15

Total lease cost
$
129

 
$
208


Future payments used in the measurement of lease liabilities on the condensed consolidated balance sheet as of March 31, 2020 are as follows (in thousands):
 
Operating
leases
 
Finance
leases
Remainder of 2020
$
589

 
$
68

2021
712

 
80

2022
672

 
5

2023
294

 

2024
114

 

Thereafter

 

Total undiscounted lease payments
2,381

 
153

Less amount representing interest
(455
)
 
(7
)
Present value of lease liabilities
$
1,926

 
$
146


Subleases
On January 17, 2019, the Company terminated a sublease agreement related to its Minneapolis, Minnesota headquarters and contemporaneously modified the Company's primary lease agreement. Upon modification, the Company recognized a gain of $21,000, which is reported in other income (expense) in the Company's condensed consolidated statement of operations for the three months ended March 31, 2019. Sublease income was $38,000 for the three months ended March 31, 2019, which is reported in other income (expense) in the Company's condensed consolidated statement of operations. The Company reported no sublease income for the three months ended March 31, 2020.
Contingencies
The Company is exposed to asserted and unasserted claims encountered in the normal course of business. Legal costs related to loss contingencies are expensed as incurred. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position or results of operations.
The Company’s standard arrangements include provisions indemnifying customers against liabilities if the Company's products infringe a third-party’s intellectual property rights. The Company has not incurred any costs in its continuing operations as a result of such indemnifications and has not accrued any liabilities related to such contingent obligations in the accompanying condensed consolidated financial statements.