Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies Disclosure

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Commitments and Contingencies Disclosure
 3 Months Ended
Jun. 30, 2014
Notes  
Commitments and Contingencies Disclosure

9.  COMMITMENTS AND CONTINGENCIES:

 

Lease Commitments - On July 18, 2012, the Company entered into a thirteen month lease for office space for our corporate headquarters located in Greenwood Village, Colorado.  Under the terms of the lease agreement, the Company leased approximately 2,244 square feet of general office space.  The lease term commenced on July 23, 2012 and ended June 30, 2014. 

 

The Company also has a lease of warehouse and office space for our equipment and operations located in Gardena, CA.  The lease term continues through July 2015.

 

Total rent expense for the three and six months ended June 30, 2014 was $19,305 and $38,404.  Rent expense for the three and six months ended June 30, 2013 was $8,819 and $17,639; respectively.

 

The Company’s remaining commitment under its current lease terms through July 2015 is approximately $65,000.

 

Purchase Commitments - As of June 30, 2014, the Company’s outsourced manufacturing company has begun fabrication of our equipment resulting in a commitment to purchase the finished equipment totaling approximately $50,000.