NOTE 8. SUBSEQUENT EVENTS

The Company evaluated subsequent events through August 7, 2017, the date these condensed consolidated financial statements were issued.

On July 24, 2017, the Company entered into an office building lease agreement for its Corporate Headquarters. The lease provides for the lease by the Company of approximately 37,875 square feet of office space in Costa Mesa, California. The lease has an initial term of 82 months and the Company has the option to extend the lease for two terms of five years each. Total minimum lease payments over the lease term is approximately $9,465, net of abatements, of which approximately $123 is expected to be paid over the next twelve months ending June 30, 2018.

There were no other material subsequent events that required recognition or additional disclosure in the accompanying condensed consolidated financial statements.