11. Commitments and Contingencies



Litigation



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 10,395 square feet, for its office facilities in Chandler, AZ through December 2020. Monthly rental payments, including common area maintenance charges, are $18,840. As of December 31, 2017, we have a deferred rent balance for this lease of $77,490 recorded in accordance with ASC 840.



The Company had 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,  including common area maintenance charges. As of December 31, 2017, we have a deferred rent balance for this lease of $1,891 recorded in accordance with ASC 840. This lease was not renewed and as of the date of this report we have relocated personnel to our Chandler headquarters.

 

The Company also has a  lease through April 2022 for 3,248  square feet of office space located in Halifax, Nova Scotia, at a monthly rental expense of $3,458 per month, excluding common area maintenance charges. As of December 31, 2017, we have a deferred rent balance for this lease of $8,197 recorded in accordance with ASC 840.



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







Rent expense was $416,080 and $335,750 for the years ended December 31, 2017 and 2016.