N OTE 9   C OMMITMENTS AND C ONTINGENCIES L EASES The Company leases a production facility in California. Under the terms of the lease, the Company owes a minimum annual rent of $125,202, payable in monthly installments of $10,433, unless earlier terminated in accordance with the lease. The lease is renewable for three 5-year terms after the expiration of the initial 10-year term. The annual rental rate is subject to increase on each annual anniversary of the commencement of the immediately preceding rental year by 3% of the rent paid during the immediately preceding year. This lease expires in January 2018. On September 9, 2013, the Company entered into a lease for its new corporate headquarters for a period of five years beginning October 1, 2013. Under the terms of the lease, the Company owes an initial annual rent of $138,952, payable in monthly installments of $11,579, unless earlier terminated in accordance with the lease. The annual rental rate, beginning after the first year, is subject to an increase, on a cumulative basis, at a rate of 2.5% per annum compounded annually. Rent is recorded on a straight-line basis. Deferred rent as of December 31, 2013 was not material. The following table sets forth the Company s aggregate future minimum payments under its operating lease commitments as of December 31, 2013 (in thousands): Years ending December 31, 2014 $ 280 2015 275 2016 283 2017 291 2018 127 $ 1,256 Rent expense for the year ended December 31, 2013 was approximately $149,000. The Company did not have any rent expense for the years ended December 31, 2012 or 2011. * As of December 31, 2013, the Company had a $4.5 million outstanding Capital Commitment to the venture capital fund. The Company did not have Capital Commitment as of December 31, 2012. E MPLOYMENT A GREEMENTS On July 8, 2013, the Company and Philip Hartstein, president of the Company, entered into an employment agreement (the  Hartstein Employment Agreement ), pursuant to which Mr. Hartstein serves as the Company s President. The Hartstein