Leases

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Leases

7. Leases

The Company leases its office and warehouse facilities in Boynton Beach, Florida under a long-term non-cancellable lease agreement, which contains renewal options and rent escalation clauses. As of December 31, 2018, a security deposit of $34,970 is included in noncurrent assets in the accompanying balance sheet. On September 27, 2012 the Company entered into a non-cancellable six-year lease agreement for the same facilities commencing August 1, 2013 and expiring July 31, 2019. The total minimum lease payments over the term of the current lease amount to $180,826.

On June 29, 2018, the Company entered into a non-cancellable five-year lease for the same facilities commencing August 1, 2019 and expiring July 31, 2024. The lease will require an initial rent of $14,899 per month, beginning August 1, 2019 for the first year, increasing by 3% per year to $16,769 per month in the fifth year. In addition, the Company is responsible for all operating expenses and utilities. As part of the lease the landlord agreed to reimburse the Company $58,000 towards the replacement of air conditioning units, upon written request. As of December 31, 2018, the Company had received all of the reimbursement.

Rent expense under all operating leases for the years ended December 31, 2018 and 2017 totaled $278,578 and $278,880, respectively, of which $221,113 and $212,454 is included in cost of products sold and $57,465 and $66,346 is included in selling and administrative costs, respectively, in the accompanying statements of operations.

In January 2015 the Company entered into a capital lease for office equipment in the amount of $15,020, which expired in December 2018. As of December 31, 2018 and December 31, 2017, the balance under capital lease obligations was $0 and $3,443, respectively.  

In September 2018, the Company entered into a new capital lease for office equipment in the amount of $599, which commenced in December 2018 for a term of 48 months.

Future minimum lease commitments due for facilities and equipment leases under non-cancellable operating leases at December 31, 2018 are as follows:

	Operating Leases
2019	$	179,255
2020		188,196
2021		193,627
2022		197,427
2023		197,807
2024		117,383
Total minimum lease payments	$	1,073,695