10. COMMITMENTS AND CONTINGENCIES Leases The Companys principal facilities are located in Maynard, Massachusetts and Hazlet, New Jersey and are leased by the Company under non-cancelable operating leases that expire in January 2019, with respect to the Massachusetts facility, and June 2018 and July 2018, with respect to various floors of the New Jersey facility. The Company also leases office space in various locations with expiration dates between 2016 and 2020. The lease agreements often include leasehold improvement incentives, escalating lease payments, renewal provisions and other provisions which require the Company to pay taxes, insurance, maintenance costs or defined rent increases. All of the Companys facility leases are accounted for as operating leases. Rent expense is recorded over the lease terms on a straight-line basis. Rent expense was $291,000 and $212,000 for the three months ended June 30, 2016 and 2015, respectively, and $551,000 and $419,000 for the six months ended June 30, 2016 and 2015, respectively. In March 2016, the Company entered into a lease to relocate the current Hazlet operations to Holmdel, New Jersey, which expires in 2021. In April 2016, the Company entered into a lease to move the Maynard operations to another section of the current facility which expires in 2024. Both of these leases have been classified as operating leases. Future minimum payments under the leases are included in the table below. Future minimum lease payments due under these non-cancelable lease agreements as of June 30, 2016, are as follows (in thousands): Amounts Remaining 2016 $ 622 2017 2,914 2018 3,276 2019 2,929 2020 2,928 Thereafter 9,812 Total $ 22,481 In addition to the lease payments, the Company has committed to approximately $5.0 million of tenant improvements related to the Maynard lease which are expected to be incurred during 2016. Warranties The Companys standard warranty obligation to its customers provides for repair or replacement of a defective product at the Companys discretion for a