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Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

 

Operating Leases

 

The Company adopted ASU 2016-02 in the first quarter of the fiscal year ending December 31, 2019. The adoption of ASU 2016-02 did not have a material impact on the Company's consolidated financial statements, as the Company does not have any material lease agreements Rubicon DTP leases a building for its manufacturing and offices, however such lease was not considered material to the Company's financial statements.

 

Net rent expense under operating leases in 2019 and 2018 amounted to $35,000 and $418,000, 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.