Quarterly report pursuant to Section 13 or 15(d)

17. Lease Commitments

17. Lease Commitments
3 Months Ended
Mar. 31, 2015
Leases [Abstract]  
Lease Commitments

As of March 31, 2015, the Company leased approximately 2,807 square feet of office space at 9401 Wilshire Boulevard, Beverly Hills, California pursuant to a standard office lease dated February 3, 2012. The lease has a term of 3 years, from May 1, 2012 through April 30, 2015. The monthly rent is $10,807 which is to be adjusted upward 3% each year on the anniversary of the lease. The Company did not renew this lease.


During the first quarter of 2015, the Company entered into an agreement for new office space to which it will relocate its operations upon the expiration of its existing lease. Effective May 1, 2015, the Company will lease approximately 3,251 square feet of general office space at 301 North Canon Drive, Suite 305, Beverly Hills, CA 90210 pursuant to a 35-month sub-lease that commences on May 1, 2015. The Company will pay approximately $136,542 annually subject to annual escalations of 3%.


Rental expenses incurred for operating leases during the three months ended March 31, 2015 and 2014 were $37,581 and $35,815, respectively.


The following is a schedule of future minimum lease payments required by the non-cancelable operating lease agreement:


Year   Amount  
2015   $ 91,115  
2016     139,273  
2017     143,451  
2018     36,214  
    $ 410,053