Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

Commitments and Contingencies
12 Months Ended
Dec. 31, 2013
Notes to Financial Statements  
Commitments and Contingencies



As of the date of this report, there are no pending legal proceedings to which we or our properties are subject, except for routine litigation incurred in the normal course of business.


Operating Lease


The Company has a lease agreement for 6,730 square feet, as amended, for its office facilities in Chandler, AZ through December 2015.  Monthly rental payments, excluding common area maintenance charges, are $11,958 in 2014 and $12,357 in 2015. The Company has month-to-month lease agreements for its office facilities in San Diego, CA and North Huron, MI.


The minimum lease payments for the Chandler, AZ facilities that are required over the next five years are shown below.


Minimum Lease Payments  
2014   $ 143,492  
2015     148,281  
2016     -  
2017     -  
2018     -  
Thereafter     -  
    $ 291,773  


Rent expense for was $166,802 and $179,179 for the years ended December 31, 2013 and 2012.