Note 8. Commitments and Contingencies Facility and Equipment Leases We lease 27,600 square feet of corporate, research and development, and warehouse facilities in Irvine, California under an operating lease expiring February 28, 2023 , subject to our option to extend the lease for two additional five-year periods. The initial base rent is approximately $ 24,700 per month. We also lease 8,100 square feet of warehouse facilities in Livingston, New Jersey under an operating lease expiring December 31, 2024, subject to our option to extend the lease for an additional five-year period. The initial base rent is approximately $ 7,600 per month. These lease agreements contain certain scheduled annual rent increases which will be accounted for on a straight-line basis. In addition, we lease certain office equipment which expires in March 2018. Future minimum lease payments are approximately as follows: Operating Leases Years ending December 31, 2018 $ 405,609 2019 416,370 2020 428,868 2021 441,736 2022 454,984 Thereafter 274,405 $ 2,421,972 Rent expense for the year ended December 31, 2017 and the nine month period ended December 31, 2016 was approximately $ 298,500 and $ 222,700 , respectively. Employment Agreements We have entered into employment agreements with certain of our officers under which payment and benefits would become payable in the event of termination by us for any reason other than cause, or upon a change in control of our Company, or by the employee for good reason. Consulting and Engineering Services On September 16, 2015, the Company entered into the Purchase and Sale Agreement (the Purchase and Sale Agreement), by and between KLATU Networks, LLC (KLATU) and the Company. Pursuant to the Purchase and Sale Agreement, the Company purchased from KLATU certain intellectual property and intellectual property rights related to the Companys Cryoportal TM logistics management platform (the Developed Technology), which KLATU previously developed for and licensed to the Company pursuant to the Master Con