Note 7 Commitments and Contingencies Facility Lease On July 26, 2013, the Company entered into an amendment for a three year lease with the Irvine Company. The amendment terminated the Company s former lease of the 51 Discovery, Suite 150, Irvine, California, 92618 premise in exchange for office space located at 175 Technology Drive, Suite 150, Irvine, California, 92618 USA. The lease payments range from approximately $9,000 per month to $10,000 per month over the term of the lease. This lease is valid through July 31, 2016. The annual payment for this space equates to approximately $111,000 per year. Litigation and Patent Reexaminations The Company owns numerous patents and continues to enlarge and strengthen its patent portfolios, which cover different aspects of the Company s technology innovations with various claim scopes. The Company plans to generate revenue by selling or licensing its technology, and intends to vigorously enforce its patent rights against infringers of such rights. The Company dedicates substantial resources in protecting its intellectual property, including its efforts to defend its patents against challenges made by way of reexamination proceedings at the United States Patent and Trademark Office ( USPTO ). These activities are likely to continue for the foreseeable future, without any guarantee that any ongoing or future patent protection and litigation activities will be successful. The Company is also subject to litigation claims that it has infringed on the intellectual property of others, against which the Company intends to defend vigorously. Litigation, whether or not eventually decided in the Company s favor or settled, is costly and time-consuming and could divert management s attention and resources. Because of the nature and inherent uncertainties of litigation, should the outcome of any of such actions be unfavorable, the Company s business, financial condition, results of operations or cash flows could be materially and adversely affected. Additionally, the outcome of pendi