Text extracted via OCR from the original document. May contain errors from the scanning process.
S-I/A
2017
42
15,232
2018
3
15,306
2019
15,206
Thereafter
66,601
Total
5
159
S 142,049
Less amount representing interest
(13)
Present value of capital lease obligations
146
Less current portion of capital lease obligation
(50)
Non-current portion of capital lease obligation
S
96
Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of
one year) and future minimum capital lease payments as of September 30, 2015 are as follows (unaudited, in thousands):
Year:
Capital
Operating
2015 (remaining 3 months)
$
16
$
3,749
2016
62
14,616
2017
47
14,729
2018
5
14,897
2019
—
15,149
Thereafter
—
67,219
Total
5
130
5130,359
Less amount representing interest
(8)
Present value of capital lease obligations
122
Less current portion of capital lease obligation
(57)
Non-current portion of capital lease obligation
S
65
F-44
Table of Content%
Litigation
On December 1, 2010, the Company, along with co-founder Jim McKelvey, filed a complaint in the United States District
Court for the Eastern District of Missouri (Civil Action No. 4:10-cv-02243) against REM Holdings 3, LLC ("REM') that. as amended,
seeks to correct the inventorship of three patents. The patents named Robert Morley as the sole inventor and REM as their
assignee of rights, and the Company filed suit to have Mr. McKelvey added as an inventor. REM subsequently filed counterclaims
alleging that the Company had infringed those same three patents. The litigation was stayed pending the outcome of reexamination
proceedings before the U.S. Patent and Trademark Office ("PTO") with respect to the three patents. Wth the exception of five
recently amended claims, which have not yet progressed beyond preliminary reexamination, all of the claims from the three patents
asserted in Mr. Morley's 2010 complaint have either been canceled or otherwise found unpatentable by the Patent Office Trial and
Appeals Board.
On January 30, 2014, Mr. Morley and REM filed a complaint against the Company, Jack Dorsey, and Mr. McKelvey, again in
the United States District Court for the Eastern District of Missouri (Civil Action No. 4:14-CV-00172), alleging that the formation of
the Company and the development of its card reader and decoding technologies constituted, among other things, breach of an oral
joint venture, fraud, negligent misrepresentation, civil conspiracy, unjust enrichment, and misappropriation of trade secrets, as well
as other related claims. Mr. Morley also alleges infringement of an additional patent from the same family as those in the prior
litigation, and he seeks correction of inventorship of certain of our patents. This lawsuit has now been consolidated with the prior
litigation, and the patent-related claims have been stayed pending the outcome of PTO proceedings.
The Company is vigorously defending against the claims of REM and Mr. Morley in both cases. Given the early stage of the
District Court proceedings. the Company cannot reliably determine the potential liability that could result from this matter.
On March 19, 2015. Jeffry Levin filed a putative class action lawsuit against Caviar, Inc. (a wholly owned subsidiary of
Square), alleging that Caviar misclassified Mr. Levin and other similarly situated couriers as independent contractors under the
provisions of the California Labor Code and claiming that certain expenses should have been borne by Caviar. This lawsuit was
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