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Note 4 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

NOTE 4 — Commitments and Contingencies

Operating Lease

The Company leases office space under a non-cancelable operating lease that provides the Company approximately 37,100 square feet in Newark, California. The lease agreement expires on June 30, 2022. Monthly base rent increases four percent per year annually on July 1^stof each year.

Future minimum lease payments under the operating lease at December 31, 2017 are shown below:

Annual minimum payments:		Amount
	2018	$	442,359
	2019		460,053
	2020		478,455
	2021		497,594
	2022		253,675
	Total minimum payments	$	2,132,136

Rental expense under all operating leases for the years ended December 31, 2017 and 2016 was $435,686 and $435,668, respectively. The amount of deferred rent at December 31, 2017 and December 31, 2016 was $274,388 and $286,901, respectively.

Capital Lease Obligations

The Company leases certain of its equipment under capital leases. The leases are collateralized by the underlying assets. At December 31, 2017 and 2016, property and equipment with costs of $100,584, were subject to such financing arrangements. The accumulated depreciation of the assets associated with the capital leases as of December 31, 2017 and December 31, 2016, amounted to $51,400 and $23,214 respectively.

Future minimum payments under capital lease and equipment financing arrangements as of December 31, 2017 are as follows:

Annual minimum payments:	Amount
2018	$	26,900
2019		17,892
2020		9,164
Total minimum payments		53,956
Less amount representing interest		(1,548	)
Present value of net minimum payments	$	52,408
Short term portion of capital leases		(25,856	)
Long term portion of capital leases	$	26,552

Purchase Commitments

At December 31, 2017, the Company’s non-cancelable purchase commitments for inventory to be used in the ordinary course of business during 2017 were approximately $2,228,000.

Legal Matters

The Company is subject to disputes, claims, requests for indemnification and lawsuits arising in the ordinary course of business. Under the indemnification provisions of the Company’s customer agreements, the Company routinely agrees to indemnify and defend its customers against infringement of any patent, trademark, copyright, trade secrets, or other intellectual property rights arising from customers’ legal use of the Company’s products or services. The exposure to the Company under these indemnification provisions is generally limited to the total amount paid for the indemnified products. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount received from the customer. To date, there have been no claims against the Company by its customers pertaining to such indemnification provisions, and no amounts have been recorded. The Company is currently not a party to any material legal proceedings.