Annual report pursuant to Section 13 and 15(d)

Commitments

v3.19.1
Commitments
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments
Note 17 — Commitments
  
Purchase commitments:
 
At December 31, 2018, we have approximately $6.5 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, 2018, such commitments are immaterial.
 
Lease commitments:
 
The Company has signed several lease agreements, with the largest being for its office and manufacturing facility under an operating lease that commenced October 3, 2015 and expires on October 3, 2020. During 2018, we executed an amendment to our original lease agreement, which expanded our office and manufacturing facility from an original 29,152 square feet to 39,152 square feet. Effective January 1, 2019, the base rent contractual payment obligations under this operating lease, as amended, will be $516,766 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 Spain (five-year lease), England (two-year lease) and Japan (two-year lease).
 
Future minimum payments required under operating lease obligations as of December 31, 2018 are as follows:
 
 
 
Total

Minimum
 
Year Ending

Dec 31,
 
Lease

Payments
 
 
 
 
 
2019
 
$
562,529
 
2020
 
 
501,809
 
2021
 
 
7,457
 
2022
 
 
8,699
 
2023
 
 
 
Total
 
$
1,080,494
 
 
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, 2018, 2017 and 2016 totaled $462,711, $461,246 and $482,147, respectively.