14. Commitments and Contingencies

Accrued Expense

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

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Operating Leases

The Company and its subsidiaries have entered into operating lease agreements for certain of its office space, and data centers. These office spaces are located in the United States, Israel, Belgium, Finland, France, Japan, Singapore, the United Kingdom, Germany, Poland, the United Arab Emirates, and Australia. The data centers are premises used to house computing and networking equipment. The data centers are located in the United States, Netherlands, Germany and Singapore.

For the years ended December 31, 2021, 2020 and 2019, office and data center rent expense was $5.6 million, $7.0 million, and $6.0 million, respectively.

For the year ended December 31, 2021, the Company recorded expense of $0.8 million in General and administrative expenses in the Consolidated Statement of Operations and Comprehensive Income upon triggering the recognition of a cease-use liability related to unoccupied leased office space; whereby, the Company no longer receives any economic benefit from the rights conveyed by the lease. The cease-use liability was determined based on the remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized under the lease as required by ASC 420, Exit or Disposal Cost Obligations.

Future minimum lease obligations are as follows:

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Capital Leases

As of December 31, 2021, the Company has 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 Consolidated Balance Sheets.

The following is a schedule of future minimum lease payments under these agreements (including interest) as of December 31, 2021.

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Commitments

On November 29, 2021, the Company entered into a non-cancellable contractual agreement to lease office space in New York, New York. The lease term for the office space is set to commence in January 2022 and end in July 2038. The Company is granted a tenant improvement allowance, for a specified amount, which is reimbursable by the landlord of the property. Subject to the terms and conditions of the lease agreement, any unused portion of the tenant improvement allowance shall be available to the Company by way of a credit against the next installment(s) of rent then due and payable until such credit has been exhausted.

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The following is a schedule of the future operating lease commitment under this agreement as of December 31, 2021.

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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.

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With respect to payments due related to the Zentrick acquisition, the Company and the Zentrick selling stockholders reached an agreement on February 14, 2022 (the “Zentrick Early Termination Agreement”), for the early termination of the Zentrick Deferred Payment Terms and resolution of the contingent payments due for both the technical milestones and revenue targets. Pursuant to the terms of the Zentrick Early Termination Agreement, the Company made a payment of $5.6 million to the Zentrick selling stockholders and the amount was recorded in the Company’s Consolidated Financial Statements as described in Footnote 4, Business Combinations.