5. Commitments and Contingencies Operating Leases We lease our offices and production facilities under non-cancelable operating leases in Santa Barbara, CA and Austin, TX that expire in November 2016 and March 2017, respectively. The leases contain minimum rent escalation clauses that require additional rental amounts after the first year. Rent expense for these leases with minimum annual rent escalation is recognized on a straight line basis over the minimum lease term. These leases also require us to pay utilities, insurance, taxes and other operating expenses and contain one five-year renewal option. In February 2015 we amended our Santa Barbara, CA building operating lease and reduced our lease commitment. Instead of leasing 35,000 square feet we would then lease 22,000 square feet and pay an early termination fee, ratably, through February 2016 roughly equal to the reduced lease amount. In April 2015, we sublet 3,000 square feet of this remaining 22,000 square feet to a third party and, in June 2015, we entered an agreement to sublet 5,000 square feet to a third party effective August 1, 2015. Other terms and conditions of the lease remain the same. For the three and nine months ended September 26, 2015 rent expense was $167,000 and $357,000, respectively, and for the three and nine months ended September 27, 2014 rent expense was $160,000 and $619,000, respectively. Patents and Licenses We have entered into various licensing agreements requiring royalty payments ranging from 0.13% to 2.5% of specified product sales. Certain of these agreements contain provisions for the payment of guaranteed or minimum royalty amounts. In the event that we fail to pay minimum annual royalties, these licenses may automatically become non-exclusive or be terminated. These royalty obligations terminate at various times from 2015 to 2020. For the three and nine months ended September 26, 2015 royalty expense totaled $11,000 and $31,000, respectively compared to an expense of $6,000 and $19,000, respectively, for the three and n