NOTE 5 ? COMMITMENTS AND CONTINGENCIES Product Warranties Our manufacturer(s) provide the Company with a 2 year warranty. The Company products are sold with a 1 year manufacturer?s warranty. The Company offers a 1 year extended warranty for a fee. The extended warranty expires at the end of the second year from the date of purchase with warranty costs during the two year period being born by the manufacturer. As a result, the Company has no, or limited warranty liability exposure. Operating Leases On November 15, 2017, the Company entered into a lease of office space at 1600 Olive Chapel Road, Apex, North Carolina 27502. The lease expires on November 30, 2020 and includes an option to extend the lease an additional term or three years. Rent is $1,650 per month and is increased each anniversary by 3%. The Company paid a $1,650 security deposit. The Company has adopted ASC 2016-2; Leases (Topic 842). As a result, The Company is required to estimate and record the right of use asset (?ROU Asset?) and lease liability on the face of The Company?s balance sheet. The Company determined the ROU Asset and lease liability to be $51,063 which compares to the total payments of the initial three year term of $61,200. The company determined that there was no discount rate implicit in the lease. Thus, the Company used its incremental borrowing rate of 12% to discount the lease payments in the determination of the ROU asset and lease liability. On March 21, 2015, the Company entered into a lease of office space at 130 Iowa Lane, Suite 102, Carry, North Carolina 27511. Subsequent to October 31, 2017, The Company moved and this lease was terminated with no further obligations The Company has no other noncancelable operating leases. Future minimum lease payments under this operating lease with an initial term in excess of one year as of October 31 , 2017 are as follows: Fiscal Year 2018 $9,481 2019 $20,048 2020 $20,649 2021 $12,253 Thereafter $0 During the three months ended October 31 , 2017 and 2016, rent expense for office space