Note 6. Commitments And Contingencies Leases In May 2015, Andrea entered into a lease for its current corporate headquarters located in Bohemia, New York, where Andrea leases space for research and development, sales and executive offices from an unrelated party. The lease is for approximately 3,000 square feet and expires in October 2020. Rent expense under this operating lease was $8,666 and $8,375 for the three months ended June 30, 2018 and 2017, respectively. Rent expense under this operating lease was $17,136 and $16,562 for the six months ended June 30, 2018 and 2017, respectively. The current monthly rent under this lease is $2,922 with annual escalations of 3.5%. As of June 30, 2018, the minimum future lease payments under this lease and all other noncancellable operating leases are as follows: 2018 (July 1  December 31) $ 31,256 2019 57,529 2020 35,787 Total $ 124,572 Employee Related Agreements In August 2014, the Company entered into an employment agreement with Mr. Andrea, which was subsequently amended on February 19, 2018 and August 9, 2018. The effective date of the original employment agreement was August 1, 2014 and it currently expires on January 31, 2019, subject to renewal as approved by the Compensation Committee of the Board of Directors. Pursuant to his amended employment agreement, Mr. Andrea will receive an annual base salary of $216,000. The employment agreement provides for quarterly bonuses equal to 5% of the Companys pre-bonus net after tax quarterly earnings for a total quarterly bonus amount not to exceed $12,500; and annual bonuses equal to 9% of the Companys annual pre-bonus net after tax earnings in excess of $300,000 up to $3,000,000, and 3% of the Companys annual pre-bonus adjusted net after tax earnings in excess of $3,000,000. Adjustments to net after tax earnings shall be made to remove the impact of change in recognition of accumulated deferred tax asset value. All bonuses shall be payable as soon as the Companys cash flow permits. All bonus determinations or any addi