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16. Lease Commitments
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6 Months Ended | ||||||||||||||||||||
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Jun. 30, 2014
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| Leases [Abstract] | |||||||||||||||||||||
| Lease Commitments |
The Company has no capital leases subject to the Capital Lease guidelines in the FASB Accounting Standards Codification.
Rental expenses incurred for operating leases during the three months ended June 30, 2014 and 2013 were $34,529 and $1,254, respectively. During the six months ended June 30, 2014 and 2013, rental expenses were $70,344 and $8,201, respectively.
Warehouse space of approximately 2,000 square feet in Rogers, Minnesota was rented on a month to month basis and was vacated as of October 31, 2013. In November 2012, the Company signed a nine month lease to occupy three offices in San Diego, California, which terminated as of April 30, 2013.
Currently, the Company leases approximately 2,807 square feet of office space at 9401 Wilshire Boulevard, Beverly Hills, California pursuant to a standard office lease dated February 3, 2012. The lease has a term of 3 years, from May 1, 2012 through April 30, 2015. The monthly rent is $10,807 which is to be adjusted upward 3% each year on the anniversary of the lease.
The following is a schedule of future minimum lease payments required by the non-cancelable operating lease agreement:
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