11. Commitments and Contingencies

Leases

We leased office space under an operating lease that commenced in December 2001 and expired in December 2011. In July 2011, we entered into a lease for new office space at another location that commenced in December 2011 and expires in March 2022. Both leases provide for operating expense reimbursements and annual escalations that are amortized over the respective lease terms on a straight-line basis. Lease payments under the December 2001 lease ceased in December 2011 while lease payments under the July 2011 lease commenced in March 2012. In October 2013, we expanded our office space under the July 2011 office space lease. At a satellite office, we leased office space under an operating lease that commenced in February 2012 and expires in January 2014.

Rent expense charged to operations was $0.3 million, $0.3 million and $0.3 million for the years ended December 31, 2013, September 30, 2012, and 2011, respectively. For the three months ended December 31, 2012, rent expense charged to operations was $0.1 million.

Future gross minimum lease payments are as follows:

Litigation

We are not currently subject to any legal proceedings that are likely to have a material adverse effect on our financial position, results of operations or cash flows.