Commitments and Contingencies
|12 Months Ended|
Dec. 31, 2016
|Commitments and Contingencies [Abstract]|
|Commitments and Contingencies||
11. Commitments and Contingencies
On June 8, 2015, the Company incurred a lease abandonment charge of $54,849 for the year ended December 31, 2015, for the former corporate headquarters located at 58 W. Buffalo St. Suite #200 in Chandler, Arizona. Due to the growth of the Company, occupancy has been taken under a new leased space. The Company estimated the liability under operating lease agreements and accrued lease abandonment costs in accordance with Accounting Standards Codification (“ASC”) 420, Exit or Disposal Cost Obligation ("ASC 420"), as the Company has no future economic benefit from the abandoned space and the lease terminated November 30, 2015. All leased space related to this lease was abandoned and ceased to be used by the Company on June 30, 2015.
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.
The Company has a lease agreement for 10,395 square feet, for its office facilities in Chandler, AZ through December 2020. Monthly rental payments, including common area maintenance charges, are $18,408. As of December 31, 2016, we have a deferred rent balance for this lease of $92,925 recorded in accordance with ASC 840.
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 $10,429, excluding common area maintenance charges. As of December 31, 2016, we have a deferred rent balance for this lease of $21,055 recorded in accordance with ASC 840.
The minimum lease payments that are required over the next five years are shown below.
Rent expense was $335,750 and $342,784 for the years ended December 31, 2016 and 2015.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef