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COMMITMENTS
3 Months Ended
Mar. 31, 2016
COMMITMENTS [Abstract]  
COMMITMENTS
NOTE 16 – COMMITMENTS

Building Lease

The Company leases a combined research and development and office facility located in Mundelein, Illinois.  The facility is approximately 44,000 square feet.  On March 14, 2014, the Company extended the lease until May 2015 and the required monthly rental payments increased to $21,361, inclusive of property taxes.  Insurance and maintenance are billed when due.

Effective January 1, 2015, the Company and its landlord executed an amendment to the lease extending the lease until July 14, 2015.  Commencing on May 1, 2015, the parties agreed to a monthly base rent of $10,681 plus property taxes.  The Company also agreed to pay $71,125 in rental arrears on April 30, 2015 and another $71,125 in rental arrears on July 1, 2015.  Finally, the parties agreed that the Company will deliver to the landlord 20,025 shares of its 12.5% convertible preferred stock which shares are convertible to common stock at the landlord’s option at .088 per preferred share. As a result of the preferred stock to be issued, the Company recorded an expense of $149,787 for the three months ended March 31, 2015 with an offset to preferred stock payable.
 
Also the Company issued a five year warrant to the landlord to purchase 171,454 shares of common stock at $0.64 per share.
 
The lease is currently on a month to month basis.  Monthly rental payments are $17,542, inclusive of property taxes.  We believe we will be successful in negotiating a new lease with the landlord.

For the three months ended March 31, 2016 and 2015, the Company recognized rent expense of $70,168 and $216,133, respectively.