Annual report pursuant to Section 13 and 15(d)

20. Commitments and Contingencies

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20. Commitments and Contingencies
12 Months Ended
Dec. 31, 2015
Pro forma financial information  
20. Commitments and Contingencies

Operating Leases

 

The Company has various non-cancelable operating lease agreements for office facilities. A summary of the approximate lease commitments under non-cancelable leases for years ending subsequent to December 31, 2015 are as follows:

 

Year ending December 31:  
2016   $ 1,600,261  
2017     1,400,898  
2018     954,364  
2019     911,285  
2020 and thereafter     1,206,441  
    $ 6,073,249  

 

Rent expense for all operating leases was $1.8 million and $1.7 million for each of the years ended December 31, 2015 and 2014, respectively.  Certain of the Company’s leases include fixed rent escalation schedules or rent escalations based upon a fixed percentage.  The Company recognizes rent expense (including escalations) on a straight-line basis over the lease term.

  

The Company is from time to time involved in claims and legal actions arising in the ordinary course of business.  Management does not expect that the outcome of any such claims or actions will have a material effect on the Company’s liquidity, results of operations or financial condition.  In addition, due to the regulatory nature of the communications industry, the Company periodically receives and responds to various inquiries from state and federal regulatory agencies.  Management does not expect the outcome of any such claims, legal actions or regulatory inquiries to have a material impact on the Company’s liquidity, results of operations or financial condition.