OPERATING LEASES

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

OPERATING LEASES

NOTE 11 – OPERATING LEASES

We are obligated to a triple-net operating lease for our 20,000 square foot manufacturing facility located in Payson, Arizona.  The terms of the lease require a monthly payment of approximately $10,000 per month, which include an estimate for utilities, taxes and repairs.  This lease expires in November of 2021.

We believe this facility will be adequate to meet our needs in the near future.  However, we are making plans to expand our building footprint in 2018 to accommodate added automation equipment.  We intend to pay for these improvements using working capital and will amortize the costs over the remaining lease period.

The following table outlines our future contractual financial obligations associated with this lease by period in which payment is expected, as of December 31, 2017:

	2018			2019			2020			2021			Total
Payson Lease		$	120,000		$	120,000		$	120,000		$	110,000	$	470,000

Our executive offices are located in Scottsdale, Arizona where we lease approximately 5,000 square feet under a month-to-month triple net lease for $3,800 per month.  This space houses our principal executive, administration, and marketing functions. We may require additional space in the near future but believe that suitable additional or alternative space will be available on commercially reasonable terms to accommodate our needs. This office building is owned by a related party.

Total lease and rent expense for the year ended December 31, 2017 was $199,950.