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Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

12. Commitments and Contingencies

Operating Leases

On June 9, 2011, the Company entered into a new lease agreement (the “Lease’) to relocate its corporate headquarters to 60 Cutter Mill Road, Great Neck, New York. The Lease was for a term of five years and two months commencing June 2011 and ending August 2016. The rent increased annually during the term and ranged from approximately $2,800 per month during the first year to approximately $3,200 per month during the fifth year.

On July 21, 2016, the Company amended the Lease (the “Lease Amendment”) to extend the term of the Lease for an additional five years, through September 30, 2021. Among other things, the Lease Amendment provides for gradual annual rent increases from approximately $3,500 per month during the first year to $3,900 per month during the fifth year of the extension term.

At December 31, 2017, approximate future minimum rental payments, including utilities, are as follows:

2018……..……………		$ 47,000
2019……..……………		49,000
2020……..……………		50,000
2021……..……………		39,000
Total……..……………		$185,000

Rent expense, including utilities, in the years 2017 and 2016 was approximately $49,000 and $45,000, respectively.

Employment Agreements

In March 1999, we entered into an employment agreement with Mr. Ran, pursuant to which: (i) Mr. Ran’s employment term renews automatically on June 30th of each year for successive one-year periods unless either party gives to the other written notice at least 180 days prior to June 30th of its intention to terminate the agreement; (ii) Mr. Ran receives an annual base salary of $225,000 and annual bonuses as determined by the Compensation Committee of the board of directors, in its sole and absolute discretion, and is eligible to participate in all executive benefit plans established and maintained by us; and (iii) Mr. Ran agreed to a one-year non-competition period following the termination of his employment.

In June 2016, the Compensation Committee approved an increase of Mr. Ran’s annual base salary from $225,000 to $275,000. In June 2017, the Compensation Committee approved another increase of Mr. Ran’s annual base salary from $275,000 to $305,000. Mr. Ran’s annual base compensation for the years 2017 and 2016 were $290,000 and $250,000, respectively. In 2017, the Compensation Committee also approved a special bonus of $33,000 and an annual bonus of $45,000 to Mr. Ran.