COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 8. COMMITMENTS AND CONTINGENCIES

The Company lease its corporate office space under an operating lease. In May 2014, the Company moved its corporate office and entered into a new operating lease. The terms of the lease are for 5 years beginning on May 1, 2014 and ending June 30, 2019 with a monthly lease payment of $7,697. The lease contains an annual escalation clause and a provision for payment of real estate taxes, insurance, and maintenance and repair expenses. Total rental expense for the lease was approximately $82,000 and $218,000, respectively, for 2014 and 2013.

Future minimum payments under the non-cancelable operating lease with initial or remaining terms of one year or more consist of the following at December 31, 2014.

2015	$	92,364
2016		92,364
2017		92,634
2018		92,364
2019		46,182
	$	415,630

b. Economic conditions and related risks, concentrations and uncertainties

At December 31, 2014, we had a working capital deficiency of approximately $17.1 million and a stockholders’ equity deficiency of approximately $17.2 million resulting from a history of operating losses. There can be no assurance that we will be able to find such financing in amounts or on terms acceptable to us, if at all, or that we will be able to achieve or sustain profitable operations and positive operating cash flows in the near term. Although subject to the general economic conditions, management believes that our current cash position will likely not be sufficient to meet our current levels of operations in the short term, our ability to achieve our business objectives and continue as a going concern for a reasonable period of time may be dependent upon the success of our plans to obtain sufficient debt or equity financing.