12 — Commitments and Contingencies

Leases. In January 2014, we entered into a non-cancelable operating lease, commencing July 1, 2014, for a new manufacturing and headquarters facility in Winter Springs, Florida owned by Susi, LLC, an entity controlled by our president, CEO and controlling stockholder, Roger Susi. Pursuant to the terms of our lease for this property, the monthly base rent is $32,583, adjusted annually for changes in the consumer price index. Under the terms of the lease, we are responsible for property taxes, insurance and maintenance expenses. The term of the lease expires on May 31, 2019. Unless advance written notice of termination is timely provided, the lease will automatically renew for two successive terms of five years each beginning in 2019 and again in 2024, and thereafter, will be renewed for successive terms of one year each.

A summary of our non-cancelable operating lease commitments of March 31, 2015 is as follows:

Nine months ending December 31, 2015	$	293,247
2016	390,996
2017	390,996
2018	390,996
2019	162,915
Total non-cancelable operating lease commitments	$	1,629,150

Rent expense under our operating leases was $100,175 and $30,770 for the three months ended March 31, 2015 and 2014, respectively.

Leasehold improvements are amortized over the shorter of the initial lease term or the estimated useful life.

Purchase commitments. We had various purchase orders for goods or services totaling approximately $2,140,358 at March 31, 2015 and $1,993,801 at December 31, 2014. No amounts related to these purchase orders have been recognized in our balance sheet.

Legal matters. On September 10, 2014, a Civil Action was filed in the U.S. District Court for the Southern District of Florida (“Lam Civil Action”). The Lam Civil Action is a putative class action lawsuit brought against the Company and certain individuals who are officers and / or directors of the Company. The plaintiff is an alleged shareholder of the Company, and seeks relief on behalf of a class of persons who purchased the Company’s common stock during the period from July 15, 2014 through September 2, 2014. The complaint alleges that the defendants failed to disclose material information concerning the Company’s compliance with FDA regulations in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and that the putative class members suffered damages as a result. The complaint additionally alleges “control person” liability against the individual defendants under Section 20(a) of the Securities Exchange Act of 1934. The Lam Civil Action is presently in the very early stages of litigation. The Company disputes the plaintiff’s allegations and theories of liability, and intends to defend the case vigorously. We have not accrued for any loss related to this matter as we believe that any such loss is not probable or estimable.

In October 2012, Radimed Gesellschaft für Kommunikationsdienstleistungen und Medizintechnik mbH (“Radimed”) brought an action in Düsseldorf Regional Court against our German distributor alleging the name and sign “iRadimed” was confusingly similar to their German trademark “Radimed.” A judgment was rendered against our German distributor preventing use of the name and sign “iRadimed” in Germany. We have however continued to sell products in Germany without any discernible effect by using the name IRI Development. On July 31, 2013, Radimed filed a lawsuit against us and our founder, Roger Susi, in Düsseldorf Regional Court, alleging that we infringed their German and Community trademarks “Radimed” and seeking to prevent our use of the name, sign and domain name “iRadimed” in the European Union. In March 2015, we settled this matter and paid the amount that had been accrued during 2014. Pursuant to this settlement, we may continue to use the name “iRadimed” and our associated signs and domain name in the European Union.

In addition to the foregoing, we may from time to time become party to various legal proceedings or claims that arise in the ordinary course of business.