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10. COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
NOTE 10. COMMITMENTS AND CONTINGENCIES

Lease Commitments

 

In September of 2014 the Company entered into a lease agreement for office and warehouse space in Fredrick Maryland. As part of the lease agreement, the Company received a rent holiday in the first 5 months of the lease.  The lease also provides for an escalation clause where the Company will be subject to an annual rent increase of 3%, year over year.  The lease expires on January 31, 2018.  The Company accounts for the lease using the straight line method and recorded $22,854 in rent expense for the six months ended June 30, 2015.  Approximate minimum annual rents under lease are as follows:

 

       
       
Twelve Month Period Ending June 30,   Amount  
       
2016   $ 51,000  
2017     53,000  
2018     31,000  
    $ 135,000