NOTE 6 - COMMITMENTS AND CONTINGENCIES Operating Lease Obligations The Company leases its office and warehouse space under a non-cancelable lease agreement accounted for as operating leases. The Company also leases an automobile under a similar non-cancelable lease agreement, which is also accounted for as an operating lease. Building Lease - Orem, Utah: The Company leases a manufacturing and office facility with 6,000 square feet of space. We lease this facility at $3,100 per month on a lease with an expiration date of November 30, 2017. Rent expense was $34,215 and $38,352 for the years ended December 31, 2014, and 2013, respectively. Automobile Lease ? The Company currently leases one vehicle with a monthly lease payment of $624 per month. The automobile lease will expire on August 8, 2017. Automobile lease expense was $10,106 and $7,860 for the years ended December 31, 2014, and 2013, respectively. Minimum rental payments under the non-cancelable operating leases are as follows: Years ending December 31, Amount 2015 $ 44,688 2016 44,688 2017 38,468 Thereafter 0 $ 127,844 NOTE 7 - PREFERRED STOCK In November 2004 the Company amended its Articles of Incorporation so as to authorize 5,000,000 shares of preferred stock. Of this total, 750,000 shares have been designated as ?Series A Convertible Preferred Stock?. As of December 31, 2014 and 2013, no shares of the preferred stock are issued and outstanding. Dividends The holders of the Series A Preferred Stock would be entitled to dividends at the rate of 8 percent per year of the liquidation preference of $1.00 per share, payable annually, if and when declared by the board of directors. Dividends are not cumulative and the board of directors is under no obligation to declare dividends. Convertibility Upon the potential approval by the Board of Directors, Series A Preferred Stock may be convertible into the Company?s common stock by dividing $1.00 plus any unpaid dividends by 50% of the five day average closing bid price of the common shares. NOTE 8 - COMMON STOCK