NOTE 15. CONTINGENCIES AND COMMITMENT Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Companys management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Companys legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. There was no contingency of this type as of December 31, 2018 and 2017. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Companys financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. There was no contingency of this type as of December 31, 2018 and 2017. Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. In August 2017 JRSS leased office space under non-cancellable operating lease agreements. Under terms of the lease agreement, from August 2017, JRSS is committed to lease expense payments of approximately $36,881 per year for 5 years. This office is used for a 2 nd outpatient facility. In December 2017 JRSS leased office space under non-cancellable operating lease agreements. Under terms of the lease agreement, from December 2017, JRSS is committed to lease expense payments of approximately $68,128 per year for 5 years. This office is used for the operations of the 1 st Branch Company. Future annual minimum lease payments, for non-cancellable operating leases are as follows: Year ending December 31 Amount $ 2019 123,105 2020 129,284 2021 134,579 2022 105,441 492,409 The company has paid rentals and lease expense of $109,326 and $26,636 for the years ended December 31, 2018 and 2017, respectively