Note 13 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

1

3

: COMMITMENTS AND CONTINGENCIES

Lease Commitments

On

November 1, 2018,

the Company entered into an operating lease to pay

$3,660

monthly rent for a term of

22

months. The total future minimum lease payments due under this lease 

are

$73,200

, of which

$43,920

and

$29,280

are due in

2019

and

2020,

respectively.

The total rent expense for the years ended

December 31, 2018

and

2017,

was

$31,457

and

$33,285,

respectively. Rent expense was included in general and administrative expenses for both years.

 On

October 30, 2018,

the Company entered into an operating lease for a copier system for a term of

36

months. The total future minimum lease payments due under this lease are

$42,228,

of which

$14,904,

$14,904

and

$12,420

are due in

2019,

2020

and

2021,

respectively.

Litigation and Contingencies

On

October 10, 2013,

a putative securities class action complaint, captioned

Cook v. Atossa Genetics, Inc., et al.

,

No.

2:13

-cv-

01836

-RSM, was filed in the United States District Court for the Western District of Washington against us, certain of our directors and officers and the underwriters of our

November 2012

initial public offering. The complaint alleged that all defendants violated Sections

11

and

12

(a)(

2

), and that we and certain of our directors and officers violated Section

15,

of the Securities Act by making material false and misleading statements and omissions in the offering’s registration statement, and that we and certain of our directors and officers violated Sections

10

(b) and

20A

of the Exchange Act and SEC Rule

10b

-

5

promulgated thereunder by making false and misleading statements and omissions in the registration statement and in certain of our subsequent press releases and SEC filings with respect to our NAF specimen collection process, our ForeCYTE Breast Health Test and our MASCT device. The complaint sought, on behalf of persons who purchased our common stock between

November 8, 2012

and

October 4, 2013,

inclusive, damages of an

unspecific amount.

 On

March 23, 2018,

the parties filed a stipulation of settlement with the court to settle the matter for

$3.5

million, completely funded by defendants’ insurers, and on

July 20, 2018

the Court approved the settlement. This case is considered closed.  

We are subject to other legal proceedings and claims that arise in the normal course of business. We believe these matters are either without merit or of a kind that should

not

have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows.