COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

10. COMMITMENTS AND CONTINGENCIES

Lease Agreements

The Company’s corporate headquarters are currently located at 35 Wilbur St., Lynbrook, NY 11563 (the “Headquarters”). As previously reported, the Company formerly leased the Headquarters from Wilbur St. Corp. (“WSC”), which was owned by Edward H. Wegman, the former CEO and Chairman of BioSpecifics. On November 21, 2013, WSC sold the Headquarters to 35 Wilbur Street Associates, LLC (the “Landlord”), and the Company entered into an Agreement of Lease (the “Lease”) with the Landlord for the Company’s Headquarters and simultaneously terminated the existing lease. Neither the Company nor its affiliates have a material relationship or affiliation with the Landlord. The term of the Lease was for twenty-four months and the base rent was $12,000 per month, provided, however, that the Company had the option to cancel the Lease after the first year by giving three months’ notice to the Landlord. The Lease was filed with the SEC as Exhibit 10.1 to the Company’s Annual Report on Form 10-K filed with the SEC on March 7, 2014. In 2014 the Company leased approximately 2,300 square feet back to the Landlord and the Company’s base rent was adjusted to approximately $10,200 per month.

On August 14, 2015, the Company entered into an agreement with the Landlord to extend the term of the lease to the Headquarters for an additional one year period (the “Extended Lease Agreement”). The one year extension will end on November 30, 2016. Pursuant to the Extended Lease Agreement, the Landlord will take occupancy of 1,000 square feet in the front of the building, the base rent will be $10,213 per month and the Company may cancel the lease with three months’ prior written notice to the Landlord at any time during the term. In addition, the Company leases a vehicle and certain office equipment which expire in mid-2017.

Future minimum annual rental payments required under non-cancelable operating leases are $130,000 at year end December 31, 2015.

Expense under all operating leases amounted to approximately $140,000 for calendar year 2014 and $143,000 for 2013 and 2012.

Future minimum annual payments required under non-cancelable operating leases are approximated as follows:

Year ending December 31,

2016		$	123,000
2017			3,000