COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2015

NOTE 5. COMMITMENTS AND CONTINGENCIES

We have various operating leases for production and office equipment, office space, and buildings under non-cancelable lease agreements expiring on various dates through 2022.

On April 1, 2015, we entered into an 89 month lease for approximately 19,000 square feet of space in Maple Grove, Minnesota for our new corporate headquarters. Annual rent payments during the lease term will increase from approximately $139,000 to $165,000. In addition to this rent obligation, we will also be responsible for certain costs, among other things, operating expenses, taxes, and insurance costs.

Rent expense for the three months ended September 30, 2015 and 2014 amounted to approximately $272,000 and $163,000, respectively. Rent expense for the nine months ended September 30, 2015 and 2014 amounted to approximately $635,000 and $499,000, respectively.

Approximate future minimum lease payments under non-cancelable leases subsequent to September 30, 2015 are as follows:

Years Ending
December 31,	Amount
2015	$	231,710
2016	594,365
2017	551,734
2018	556,906
2019	400,299
Thereafter	452,303

Total	$	2,787,317