NOTE 6. COMMITMENTS AND CONTINGENCIES Leases The Company leases approximately 8,500 square feet of office space for its corporate headquarters in Pasadena, California. The lease will expire in September 2019. Monthly rental payments are approximately $26,000 per month, increasing approximately 3% annually. The Company also leases approximately 60,000 square feet of office and laboratory space for its research facility in Madison, Wisconsin.The lease will expire in September 2026.As part of this lease, the Company was provided a primary tenant improvement allowance of $2.1 million which is accounted for as Deferred Rent and a secondary tenant improvement allowance of $2.7 million which is accounted for as a Note Payable on the Companys Consolidated Balance Sheet.Monthly rental payments, including payments of principal and interest on the Note Payable are approximately $180,100 per month. The Company previously leased additional research facility space in Middleton, Wisconsin, however, this lease expired in December 2016. Monthly rental expense for the Middleton space was approximately $14,000.Other monthly rental expenses included common area maintenance and real estate taxes totaling approximately $4,000 per month. Facility rent expense for the three months ended December 31, 2016 and 2015 was $381,100 and $198,600, respectively. As of December 31, 2016, future minimum lease payments due in fiscal years under operating leases are as follows: 2017 $ 1,118,650 201 8 1,531,765 201 9 1,435,409 2020 1,044,431 2021 1,070,496 2022 and thereafter 5,766,495 Total $ 11,967,246 Note Payable As part of the Companys lease for its research facility in Madison, Wisconsin discussed above, the Company entered into a $2.7 million promissory note payable with its landlord to finance certain tenant improvements made to the new facility.The note will be amortized over the 10-year term of the lease, commencing on October 1, 2016.The note bears interest at a rate of 7.1% and is payable in equal monthly installments of