12. Commitments and Contingencies Operating Leases On July 21, 2016, the Company amended its existing lease (the Lease Amendment) for its corporate headquarters located at 60 Cutter Mill Road, Great Neck, New York, to extend the term of the lease for an additional five years, through September 30, 2021. Among other things, the Lease Amendment provides for gradual annual rent increases from approximately $3,500 per month during the first year to $3,900 per month during the fifth year of the extension term. In addition, on March 15, 2019, the Company entered into a sixty (60) month equipment rental agreement with a monthly payment of $200. As a result of the adoption of ASU 2016-02 effective January 1, 2019, the Company recorded a right-of-use asset and corresponding operating lease liability in an aggregate amount of $135,270, not including its share of its variable real estate taxes. The Company used a discount rate of 6.5% which it believes to be its incremental borrowing rate at the time. The adoption did not have a material impact on the Companys consolidated financial statements. At December 31, 2019, approximate future minimum lease payments, including mandatory fixed electricity charges, are as follows: 2020 $ 52,180 2021 39,736 2022 2,400 2023 2,400 2024 600 Total minimum lease payments 97,316 Less: amount representing interest (6,291 ) Present Value of Net Minimum Lease Payments $ 91,025 Rent expense, including fixed electricity charges, in the years 2019 and 2018 was approximately $52,000 and $50,000, respectively. Employment Agreements In March 1999, we entered into an employment agreement with Mr. Ran, pursuant to which: (i) Mr. Rans employment term renews automatically on June 30th of each year for successive one-year periods unless either party gives to the other written notice at least 180 days prior to June 30th of its intention to terminate the agreement; (ii) Mr. Ran receives a current annual base salary of $305,000 and annual bonuses as determined by the Compensation Committee of the board of directors, in its sole and absolute discretion, and is eligible to participate in all executive benefit plans established and maintained by us; and (iii) Mr. Ran agreed to a one-year non-competition period following the termination of his employment. In October 2019, Mr. Ran voluntarily agreed to forgo his base salary in an aggregate amount of $50,833 for the months of November and December 2019, and therefore Mr. Rans annual base compensation for the years 2019 and 2018 were $254,167 and $305,000, respectively. In addition, the Compensation Committee approved an annual bonus of $78,000 to Mr. Ran in 2018.