(9) Commitments and Contingencies Capital Leases The Company has entered into certain capital leases for computer equipment and vehicles. The leases are payable in monthly installments and expire at various dates through 2018. The recorded balance of capital lease obligations as of December 31, 2016 and 2015 was $0.1million and less than $0.1million, respectively. Future minimum payments under capital leases at December 31, 2016 are as follows: Year Capital Lease Obligations (In thousands) 2017 $ 37 2018 5 Total 42 Less portion representing interest (3 ) Present value of future minimum payments 39 Current maturities of capital lease payments (35 ) Capital leases, excluding current portion $ 4 Operating Leases On June 29, 2016, the Company entered into a new agreement to lease approximately 51,650 square feet of office space in Northborough, MA, the location of the Companys current headquarters. The new lease succeeds the existing lease between the Company and the landlord that expires on December 31, 2016. The lease term commences on January 1, 2017 and expires on December 31, 2026. The annual base rent associated with the lease will be approximately $408,000 during the first year of the lease, and increase by approximately 3% annually for the term of the lease. The lease also provides for the payment by the Company of its pro rata share of real estate taxes and certain other expenses. Prior to the expiration of the lease term, the Company will have the right to extend the lease for an additional term of three years. Under the terms of the new lease, the landlord will provide the Company with an allowance of up to $1.2 million to be utilized for improvements to the leased premises. These amounts are recorded as a component of deferred rent in determining the minimum lease payments for the property. As of December 31, 2016, the Company had capitalized $0.7 million in leasehold improvement costs. The Company also leases facilities and equipment under operating leases expiring at various dates through 2021. Under