Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

Commitments and Contingencies
12 Months Ended
Dec. 31, 2014
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 also has a lease through January 2018 for approximately 3,023 square feet of office space in San Diego, California at a monthly expense of $9,825, excluding common area maintenance charges.


We also have a month to month lease for approximately 700 square feet of office space in North Huron, Michigan at a monthly expense of $600.  


The minimum lease payments that are required over the next five years are shown below.


Minimum Lease Payments  
2015   $ 227,484  
2016     122,734  
2017     126,361  
2018     10,732  
2019     -  
Thereafter     -  
    $ 487,311  


Rent expense was $248,573 and $166,802 for the years ended December 31, 2014 and 2013.