NOTE 10 - COMMITMENTS AND CONTINGENCIES Office / Warehouse Lease The Companys California entity is leasing office and warehouse space in Santa Clarita, California. The lease was renewed on March 16, 2015 and continues through April 30, 2016. The lease agreement calls for monthly base rent in the amount of $9 734. The lease has been renewed again on March 1, 2016 to be effective from May 1, 2016 to April 30, 2017. The base rent will be $10,015 for this extended period. In addition, the Companys South African branch leases space in South Africa. The lease was renewed on December 12, 2014 and continues through December 15, 2016. The lease agreement calls for an initial monthly rent of $3,795. Minimum lease payments under non cancellable operating lease agreements in each of the years subsequent to December 31, 2015 are as follows: 2016 $ 162,697 2017 $ 40,060 Rent expense totaled $207,849 and $210,185, respectively, for the years ended December 31, 2015 and 2014. Litigation/Potential Litigation In the ordinary course of business, the Company is involved in various legal proceedings involving product liability and personal injury and intellectual property litigation. The Company is insured against loss for certain of these matters. The Company will record contingent liabilities resulting from asserted and unasserted claims against it when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable. The Company will disclose contingent liabilities when there is a reasonable possibility that the ultimate loss will exceed the recorded liability. While the outcome of the currently pending litigation is not yet determinable, the ultimate exposure with respect to these matters cannot be ascertained. However, based on the information currently available to the Company, the Company does not expect that any liabilities or costs that might be incurred to resolve these matters will have a material adverse effect on the financial condition, results of operations, liquidity or cash flow