NOTE D - COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

Notes

NOTE D - COMMITMENTS AND CONTINGENCIES

NOTE D – COMMITMENTS

Operating Leases

The Company leases its executive office space under a non-cancelable operating lease, at an effective annual rental rate of $16.50 per square foot, which will expire December 31, 2019. Future minimum lease payments required at December 31, 2018, under non-cancelable operating leases that have initial lease terms exceeding one year are presented in the following table:

Year ending December 31
2019	221,782
	$221,782

Rental expense for all operating leases for the years ended December 31, 2018 and 2017, was approximately $296,166 and $297,364, respectively.

The Company’s long-term non-cancelable operating lease includes scheduled base rental increases over the term of the lease. The total amount of the base rental payments is charged to expense on the on the straight-line method over the term of the lease. straight-line method over the term of the the lease. lease.

The Company had recorded a deferred credit of $6,523 at December 31, 2018, which is reflected in Accrued and Other Liabilities on the Balance Sheet to reflect the net excess of rental expense over cash payments since inception of the lease. In addition to the base rent payments the Company pays a monthly allocation of the building’s operating expenses.