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9. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

NOTE 9. COMMITMENTS AND CONTINGENCIES

Lease Commitments

In September 2014, we entered into a lease agreement for office and warehouse space in Frederick, Maryland. As part of the lease agreement, we received a rent holiday in the first 5 months of the lease. The lease also provides for an escalation clause pursuant to which the Company will be subject to an annual rent increase of 3%, year over year. The lease expired on January 31, 2018 and is currently on a month to month basis. The Company accounts for the lease using the straight-line method and recorded $45,709 in rent expense for the years ended December 31, 2017 and 2016. Approximate minimum annual rents under the lease are as follows:

Period Ending January 31,		Amount
2018		$	4,000
		$	4,000

Legal Contingencies

We may become a party to litigation in the normal course of business. In the opinion of management, there are no legal matters involving us that would have a material adverse effect upon our financial condition, results of operations or cash flows. In addition, from time to time, we may have to file claims against parties that infringe on our intellectual property.

Product Liability

As of December 31, 2017, and December 31, 2016, there were no claims against us for product liability.