13. Commitments and contingencies On October 1, 2018, the Company entered into a one -year rental agreement. On September 1, 2019, the Company elected to renew this rental agreement for an additional one -year period, as well as enter into an additional one -year rental agreement. The Company elected not to account for these leases in accordance with ASC 842 as they are for a one -year term. Total future annual lease payments for the premises are as follows: 2019 $ 12,480 2020 33,280 Total $ 45,760 On November 26, 2018, the Company entered into a Development and Supply Agreement and as part of this agreement, the Company has contingent future outflows as follows:  1 st payment: At the later of the achievement of a future milestone event or September 12, 2019, can decide to receive payment as follows:  $3,000,000 in cash or  $1,500,000 in cash and $1.95 million in equity  2 nd payment: At the later of the achievement of a future milestone or February 19, 2020 - $2,000,000 in cash. As at September 30, 2019, neither of the future development milestones related to the above agreement have been met. On May 10, 2018, the Company entered into a Development, Commercialization and Exclusive Distribution Agreement. As part of the agreement, the Company is required to make the following future milestone payments:  1 st payment: $3,500,000 in cash payment upon the achievement of future development milestones  2 nd payment: $3,500,000 in equity based on the number of the Companys common stock determined by dividing the amount due by the volume-weighted average price of the Companys common stock on the NYSE American exchange over the 10 trading days prior to the achievement of the milestone event. As at September 30, 2019, neither of the future development milestones related to the above agreement have been met. From time to time, the Company may be exposed to claims and legal actions in the normal course of business. As at September 30, 2019, and continuing as at November 12, 2019, the Company is not aware of any pending or threatened material litigation claims against the Company, other than as described below. On November 1, 2019, Heska Corporation (Heska) filed a complaint for damages and injunctive relief (the Complaint) in the United States District Court for the Middle District of North Carolina, Case 1:19 -cv- 01108 -LCB-JLW, against Qorvo US, Inc. (Qorvo US), Qorvo Biotechnologies, LLC (Qorvo Biotech and, together with Qorvo US, Qorvo) and the Company (collectively with Qorvo, the Defendants). The Complaint alleges, among other things, that the Defendants improperly obtained Heskas trade secrets and confidential information and/or conspired to use improper means to misappropriate Heskas trade secrets related to an instrument and related consumable products for performing immunoassay analysis of biomarkers and other substances. The Complaint seeks compensatory and exemplary damages, as well as preliminary and permanent injunctive relief to prevent the Defendants from commercializing the Companys TRUFORMA TM diagnostic instrument. Under the terms of the Development and Supply Agreement, dated November 26, 2018, by and between Qorvo Biotech and the Company (the Qorvo Agreement), Qorvo Biotech agreed to indemnify the Company and certain related parties against claims alleging infringement or misappropriation of third -party intellectual property rights, subject to certain limitations and exceptions. Qorvo Biotech has notified the Company that Qorvo Biotech has assumed the defense of the Complaint and will indemnify the Company for losses arising from the Complaint in accordance with the terms of the Qorvo Agreement. Qorvo Biotech has further advised the Company that it intends to mount a vigorous defense to the claims in the Complaint, and that it believes the allegations contained in the Complaint are without merit.