8. COMMITMENTS AND CONTINGENCIES
|9 Months Ended|
Sep. 30, 2015
|Notes to Financial Statements|
|NOTE 8 - COMMITMENTS AND CONTINGENCIES||
The Company entered into a three year lease agreement for their office lease facility commencing July 1, 2012, with escalating rental payments. On February 21, 2013, the Company amended the lease agreement to extend the lease through March 2018 and increase rental space. The effects of variable rent disbursements have been expensed on a straight-line basis over the life of the lease. The Company recognized rent expense of $14,381 and $14,378 during the three months ended September 30, 2015 and 2014, respectively. The Company recognized rent expense of $43,143 for both nine month periods ended September 30, 2015 and 2014. As of September 30, 2015 and December 31, 2014, there was $19,455 and $22,810, respectively, of deferred rent included in accrued expenses and other current liabilities in the accompanying balance sheets.
Future minimum lease payments under all non-cancelable operating leases as of September 30, 2015 are as follows:
On May 14, 2014, the Company entered into a definitive Marketing Agreement with Benchworks SD, LLC (Benchworks), a company engaged in the marketing, promotion and offering for distribution and sale of pharmaceutical, healthcare and consumer products. Under the terms of the agreement, the Company had granted Benchworks the exclusive right to promote, market, sell and distribute SUGARDOWN® in North America for an initial term of one year, subject to extension in accordance with the terms of the agreement. Benchworks was responsible and bore the expense for marketing and commercializing SUGARDOWN®, including the creation and payment for marketing, creative and promotional materials. The agreement defined certain minimum net sales levels that Benchworks had to achieve to maintain exclusivity. Revenue generated pursuant to the Marketing Agreement for the three and nine months ended September 30, 2015 were $0 and $19,122, respectively. The agreement was terminated in July 2015.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef