Quarterly report pursuant to Section 13 or 15(d)

17. Lease Commitments

17. Lease Commitments
6 Months Ended
Jun. 30, 2015
Leases [Abstract]  
Lease Commitments

As of December 31, 2014, 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 had a term of 3 years, from May 1, 2012 through April 30, 2015. The monthly rent was $10,807 which was 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 relocated its operations upon the expiration of its prior lease. Effective May 1, 2015, the Company began leasing 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 commenced 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 six months ended June 30, 2015 and 2014 were $72,136 and $70,344, respectively.


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


Year   Amount  
2015   $ 68,226  
2016     139,273  
2017     143,451  
2018     36,214  
    $ 410,053