11. Commitments and Contingencies On April 1, 2015, the Company signed a 31 month lease for approximately 6,200 square feet of office and laboratory space at 6335 Ferris Square, Suite B, San Diego, California. The facility includes approximately 1,500 square feet of laboratory space. Commencement date of the lease is May 1, 2015. Total net rent under this lease is $247,000 and expires on November 30, 2017. The annual minimum lease payments under non-cancellable operating leases, including common area maintenance and amortization of leasehold improvements that have an initial or remaining term in excess of one year at June 30, 2016 are due as follows: 2016 $ 65,159 2017 121,197 Total minimum lease payments $ 186,356 Rent expense for the three and six months ended June 30, 2016 was $23,409 and $55,482, respectively, and was $42,196 and $67,725, respectively, for the three and six months ended June 30, 2015. On April 21, 2016, the Company subleased a portion of the facility to an unrelated third party on a month-to-month basis commencing May 1, 2016. Monthly gross rent from the subtenant is $5,000 per month. Subtenant must provide the Company with sixty days prior written notice of its intent to terminate the sublease. Distribution and License Agreement and Joint Development Agreements The Company entered into a Distribution and License Agreement with a third-party for the purpose of developing a sensor array to be used in the Companys product. The Distribution and License Agreement has an initial term of ten years, but can be terminated earlier if the project does not meet the specifications of the Company. The Company will obtain exclusive rights to sell and distribute once a successful sensor prototype is developed. In exchange for a functional prototype, the Company will pay the third-party a 7% royalty on net sales. During the three and six months ended June 30, 2016 and 2015, the Company incurred did not incur any development costs related to the Distribution and License Agreement. On November 1, 2013, the Co