Note 9 - Commitments & Contingencies

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9. Commitments & Contingencies

Leases

We lease approximately

30,000

square feet in our Bothell, Washington headquarters. The term of our lease continues until

July 31, 2021

with

two

options to extend the term of the lease, each of which is for an additional period of

five

years, with the

first

extension term commencing, if at all, on

August 1, 2021,

and the

second

extension term commencing, if at all, immediately following the expiration of the

first

extension term. In accordance with the amended lease agreement, our monthly base rent is approximately

$59,000

at

September 30, 2018,

with scheduled annual increases each

August

and again in

October

for the most recent amendment. We are also required to pay an amount equal to the Company’s proportionate share of certain taxes and operating expenses. 

Employment Agreements

We have employment agreements with our Chief Executive Officer, Chief Financial Officer, Chief Technology Officer, Vice President of Operations, Vice President of Marketing, and Vice President of Sales.

None

of these employment agreements is for a definitive period, but rather each will continue indefinitely until terminated in accordance with its terms. The agreements provide for a base annual salary, payable in monthly (or shorter) installments. Under certain conditions and for certain of these officers, we

may

be required to pay additional amounts upon terminating the officer or upon the officer resigning for good reason. 

Litigation

From time to time, the Company is subject to various legal proceedings that arise in the ordinary course of business,

none

of which are currently material to the Company’s business.