Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.21.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2021
Commitments and Contingencies  
Commitments and Contingencies

13.   Commitments and Contingencies

Accrued Expense

Accrued expenses as of June 30, 2021 and December 31, 2020 were as follows:

    

As of

(in thousands)

June 30, 2021

    

December 31, 2020

Vendor payments

$

3,507

$

3,896

Employee commissions and bonuses

 

10,304

 

11,344

Payroll and other employee related expense

 

8,579

 

6,957

401k and pension expense

 

848

 

1,358

Other taxes

 

2,222

 

1,864

Total accrued expense

$

25,460

$

25,419

Operating Leases

The Company and its subsidiaries have entered into operating lease agreements for certain of its office space, and data centers. The offices are located in the United States, Israel, Belgium, Finland, France, Japan, and Singapore. The data centers are premises used to house computing and networking equipment. The data center leases are located within the United States, Netherlands, Germany and Singapore.

For the three months ended June 30, 2021 and June 30, 2020 office rent expense was $1.2 million and $1.5 million, respectively. For the six months ended June 30, 2021 and June 30, 2020 office rent expense was $2.1 million and $2.9 million, respectively.

For the three months ended June 30, 2021 and June 30, 2020 data center rent expense was $0.4 million and $0.3 million, respectively. For the six months ended June 30, 2021 and June 30, 2020 data center rent expense was $0.9 million and $0.6 million, respectively.

Future minimum lease obligations are as follows:

    

Year Ending

(in thousands)

December 31, 

2021

$

2,848

2022

 

4,778

2023

 

4,211

2024

 

563

$

12,400

Capital Leases

As of June 30, 2021, the Company had seven lease agreements for certain equipment which provide for the transfer of ownership at the end of the lease term or are for underlying assets that will have an insignificant fair value at the end of the lease term. The Company has classified these agreements as capital leases and recognized the corresponding assets and liabilities within the Condensed Consolidated Balance Sheet.

The following is a schedule of future minimum lease payments under these agreements (including interest) as of June 30, 2021.

    

Year Ending

(in thousands)

December 31, 

2021

$

1,109

2022

 

2,144

2023

 

1,937

2024

 

598

2025

 

170

Total

 

5,958

Less: Amount representing interest

 

(319)

Present Value of net minimum capital lease payments

$

5,639

Capital leases short term

$

2,021

Capital leases long term

 

3,618

Total

$

5,639

Contingencies

From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. The Company records liabilities for contingencies including legal costs when it is probable that a liability has been incurred and when the amount can be reasonably estimated. Legal costs are expensed as incurred. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or other claims will have a material effect on the Company’s business, financial condition, results of operations or cash flows.