Note 10. Commitments and Contingencies Operating Lease The Company leases its principal executive offices in Newark, California, under a non-cancelable operating lease which expires in 2021. The Company recognizes rent expense on a straight-line basis over the expected lease term. The difference between cash payments required and rent expense is recorded as deferred rent. Rent expense for the Companys facilities was $0.1 million for both the three months ended March 31, 2018 and 2017. The following is a schedule of future minimum lease payments under the non-cancelable operating lease at March 31, 2018 (in thousands): 2018 (remainder of year) $ 252 2019 346 2020 357 2021 305 2022  Total $ 1,260 Contingencies On November 6, 2017, three individuals, Ken Fisher, Kevin Baxter and Fred Holmes (the Contractors), filed a complaint with the Superior Court of California, County of Alameda, alleging breach of contract, a breach of the implied covenant of good faith and fair dealing and violation of Section 17200 et seq. of the California Business and Professions Code, purportedly predicated on an alleged breach of Section 10b-5 of the Securities Exchange Act of 1934. The Contractors filed a First Amended Complaint on November 22, 2017, adding claims for promissory estoppel, conversion, anticipatory breach of contract, and unjust enrichment, and then sought a writ of attachment over damages, which the court denied on December 21, 2017. The Contractors subsequently filed a motion seeking leave of court to file a Second Amended Complaint (SAC) on January 26, 2017. The motion was granted and on March 2, 2018 the Contractors filed a SAC asserting claims for breach of contract, anticipatory breach of contract, breach of the implied covenant, and conversion. The Contractors have filed another motion for leave to amend to file a Third Amended Complaint (TAC), which will be heard on June 14, 2018. The proposed TAC alleges breach of contract, breach of the covenant of good faith and fair dealing, conversion, violation of Sec