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COMMITMENTS and CONTINGENCIES
12 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS and CONTINGENCIES

NOTE 13–COMMITMENTS and CONTINGENCIES

 

Operation, Monitoring and Maintenance Agreement with 50 Beale Street Energy, LLC

 On November 8, 2013 the Company, as an independent contractor, entered into an agreement, with 50 Beale Street Energy, LLC, to operate, monitor and maintain the facility located at 50 Beale Street, San Francisco, for a fee of $2,000 per month plus reimbursable expenses, payable quarterly for 120 months plus, by agreement of the parties, additional terms of three periods of 60 months each.

 

As a result of a dispute arising out of the Lease, the owner (lessor) of 701 B St, San Diego, CA, on April 23, 2014, filed an unlawful detainer action to recover possession of the premises. 808 Renewable (lessee) was to pick up equipment located at the premises but elected to abandon the equipment because the Lessor interfered with the Lessee's efforts to remove the equipment and, moreover, the removal was cost prohibitive. Lessor served notices of abandonment related to Lessee's equipment, which Lessee did not respond to. As a result, Lessor filed a new action that alleged breach of contract. The potential liability related to the abandonment is for Lessor's cost of removal of the equipment, which is potentially offset by Lessee's claim for breach of an energy supply agreement between the parties. This case is currently pending for trial in January 2017. Lessee continues to vigorously defend against the Lessor's claims and to vigorously prosecute its only claims for breach of the energy supply agreement.

 

The Company has prepaid $26,163 for a twelve month lease commencing November 1, 2015 and terminating October 31, 2016.