Annual report pursuant to Section 13 and 15(d)

Commitments

v3.8.0.1
Commitments
12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments
Note 14 — Commitments
  
Purchase commitments
 
At December 31, 2017, we have approximately $7  million in open purchase obligations that represent commitments to purchase inventory, materials, capital equipment, and other goods used in the normal operation of our business.
 
Adverse purchase commitments
 
We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our products. We continuously assess our outstanding commitments and recognize a loss on purchase commitments, when required, if such commitments are in excess of our product needs or the costs are not expected to be recoverable. As of December 31, 2017, such commitments are immaterial.
 
Lease commitments
 
The Company has signed several lease agreements, with the largest being for its new office and manufacturing space under an operating lease that commenced October 3, 2015, that expires on October 3, 2020. The base rent contractual payment obligations under this operating lease will be $335,248 per year. The lease has an original five-year term with an option by the Company to renew for two additional three-year terms at pre-agreed to lease rates. The Company also leases small office spaces in England under a two-year lease and under a one-year lease arrangements in Japan.
 
Future minimum payments required under operating lease obligations as of December 31, 2017 are as follows:
 
 
 
Total
Minimum
 
Year Ending
Dec 31,
 
Lease
Payments
 
 
 
 
 
 
2018
 
$
411,135
 
2019
 
 
403,730
 
2020
 
 
363,881
 
2021
 
 
-
 
2022
 
 
-
 
Total
 
$
1,178,746
 
 
For the lease agreements described above, the Company is required to pay the pro rata share of the real property taxes and assessments, expenses and other charges associated with these facilities.
 
Rent expense for the years ended December 31, 2017, 2016 and 2015 totaled $461,246, $482,147 and $186,471, respectively.