7. Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Notes

7. Commitments and Contingencies

7.     COMMITMENTS AND CONTINGENCIES

Commitments

Operating Leases

The Company's principal executive offices and its warehouse and distribution operations moved to 7251 Condor Street, Commerce California in March 2011.  The Company leases 27,500 square feet at a rental rate of $8,800 per month.  The lease of the facility expires in 2014. 

Legal Contingency

On March 19, 2013, the Company received notice of a claim filed by a vendor requesting an additional payment of $38,264 for a piece of equipment that was purchased by the Company. The Company has a counter claim filed against the vendor for misrepresentation about the performance of the piece of equipment purchased. The Company has retained counsel to aggressively defend the matter.