Note 6 - Commitments and Contingencies
|3 Months Ended|
Mar. 31, 2017
|Notes to Financial Statements|
|Commitments and Contingencies Disclosure [Text Block]||
6.Commitments and Contingencies
2012,the Company entered into a lease agreement for office and laboratory facilities in Sunnyvale, California. The lease agreement, as amended in
2012and will terminate in
2018.Rent expense for the
2017,the Company entered into a sublease agreement (the “Sublease”) for approximately
12,400square feet of building space for the relocation of the Company’s corporate headquarters to Englewood, Colorado (the “Sublease Premises”), which was effective as of
2017.Physical relocation is planned in the
2017pending completion of the build-out of all office and warehouse facilities.
The term of the Sublease will commence on the later of (i)
120days after the date sublandlord delivers possession of the Sublease Premises to the Company or (iii) upon substantial completion of the
tenantimprovements pursuant to the Sublease (the “Commencement Date”), and will expire
36months after the Commencement Date, or such earlier date as the master lease
maybe terminated pursuant to the terms thereof.
The monthly base rent under the Sublease will be equal to
$20.50per rentable square foot of the Sublease Premises during the
firstyear. The monthly base rent will be equal to
21.75per rentable square foot during the
thirdyears, respectively. In connection with the execution of the Sublease, the Company also agreed to pay a security deposit of approximately
$22,000.The Company is entitled to an allowance of approximately
tenantimprovements relating to the engineering, design and construction of the Sublease Premises.
2017,future minimum payments under the leases are as follows (in thousands):
The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with performance of services within the scope of the agreement, breach of the agreement by the Company, or noncompliance of regulations or laws by the Company, in all cases provided the indemnified party has not breached the agreement and/or the loss is not attributable to the indemnified party’s negligence or willful malfeasance. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these arrangements is not determinable. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal.
The Company is or has been subject to proceedings, lawsuits and other claims arising in the ordinary course of business. The Company evaluates contingent liabilities, including threatened or pending litigation, for potential losses. If the potential loss from any claim or legal proceeding in considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based upon the best information available. For potential losses for which there is a reasonable possibility (meaning the likelihood is more than remote but less than probable) that a loss exists, the Company will disclose an estimate of the potential loss or range of such potential loss or include a statement that an estimate of the potential loss cannot be made. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigation and
mayrevise its estimates, which could materially impact its condensed consolidated financial statements. Management does not believe that the outcome of any outstanding legal matters will have a material adverse effect on the Company's consolidated financial position, results of operations and cash flows.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef