Note 13 - Contingent Liabilities and Commitments

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note 13. Contingent Liabilities and Commitments

In

July 2011,

the Company executed a lease (the “Lease”) with Brandywine Operating Partnership, L.P. (Brandywine), a Delaware limited partnership for a

10,870

square foot premises located in Lawrenceville, New Jersey.  In

October 2011,

the Company relocated its offices to Lawrenceville, New Jersey from Columbia, Maryland.  The lease has a term of

66

months and provides for

6

months of rent free, with the

first

monthly rent payment of approximately

$23,000

due and paid in

April 2012.  

Also, as required by the Lease, the Company provided Brandywine with an irrevocable and unconditional standby letter of credit for

$250,000,

which the Company secured with an escrow deposit at its banking institution of this same amount.  The standby letter of credit will be reduced by

$50,000

on each of the

19th,

31st

and

43rd

months from the initial term, with the remaining

$100,000

amount remaining until the Lease term has expired. In connection with

three

$50,000

reductions of the standby letter of credit in

April 2013

and

2014

and

2015,

the Company reduced the escrow deposit by

$50,000

each time. In late

2015,

Lenox Drive Office Park LLC, purchased the real estate and office building and assumed the lease. This lease was set to expire on

April 30, 2017.

In

April 2017,

the Company and the landlord amended the Lease effective

May 1, 2017.

The Lease amendment extended the term for an additional

64

months, reduced the premises to

7,565

square feet, reduced the monthly rent, provided

four

months free rent and reduced the escrow deposit to

$50,000.

The monthly rent will range from approximately

$18,900

in the

first

year to approximately

$20,500

in the final year of the amendment. The Company also has a

one

-time option to cancel the lease as of the

40

th

month after the commencement date of the Lease amendment.

In connection with the EGEN Asset Purchase agreement in

June 2014,

the Company assumed the existing lease with another landlord for an

11,500

square foot premises located in Huntsville Alabama. This lease has a remaining term of

seven

months with rent payments of approximately

$23,200

per month.