XML 29 R17.htm IDEA: XBRL DOCUMENT v3.19.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

 

Operating Leases

 

The Company leased buildings used for manufacturing and offices. In the third quarter of 2018, the Company vacated its leased Franklin Park, Illinois, facility due to the expiration of its lease. Additionally, in September 2018, the Company completed the purchase of its Bensenville property, which the Company leased previously. The Company does not have any future lease obligations.

 

Net rent expense under operating leases in 2018 and 2017 amounted to $418,000 and $592,500, respectively.

   

Litigation

 

From time to time, the Company experiences routine litigation in the ordinary course of business. On October 31, 2018, the Company received a summons from Bartmann, Perales & Dolter, LLC, the former lessor of the Franklin Park, Illinois, property the Company leased previously, alleging that the Company owes $175,000 in overdue rent payments, property taxes and restoration costs. The Company intends to vigorously defend against these allegations and has asserted a counterclaim pursuant to the terms of the lease agreement for reimbursement of costs and expenses to maintain the condition and repair for said property. The management of the Company does not believe any pending litigation will have a material adverse effect on the financial condition or results of operations or cash flows of the Company.