Commitments

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

NOTE 9 – COMMITMENTS

Capital Leases

The Company leases equipment under capital lease agreements. Future minimum lease payments at September 30, 2016 are as follows:

Years ending December 31,	Amount
Remainder of 2016	$	3,737
2017		14,950
2018		9,668
Total minimum lease payments		28,355
Less: amount represented by interest		(1,683	)
Less: current portion		(13,478	)
Capital lease obligations, net of current portion	$	13,194

Technology License Agreement

In March 2013, the Company entered into a Technology License Agreement with a third party vendor for consulting services. Under the agreement, the Company agreed to pay the vendor $100,000 per year commencing on March 1, 2013.

In 2015, the agreement was amended. Under the amended agreement, the Company will pay the vendor a minimum consulting amount of $100,000 per year, plus a royalty of 7% of all net sales of the vendor’s products above $1,428,571 per calendar year. For each of the nine months ended September 30, 2016 and 2015, $75,000 was recorded as research and development expense under the agreement on the condensed consolidated Statements of Operations. Royalty fees of $15,063 were owed under the agreement for the nine months ended September 30, 2016. A total of $138,826 and $123,763 was owed under the agreements as of September 30, 2016 and December 31, 2015, respectively, and are included in Accounts Payable and Accrued Expenses on the condensed consolidated Balance Sheets.