NOTE 12 – LEASES

Manoa Innovation Center

The Company entered into an automatically renewable month-to-month lease for office space on August 13, 2010. Under the terms of this lease, the Company must provide a written notice 45 days prior to vacating the premises. Total rent expense under this agreement as amended was $13,701 and $20,902, for the three and six-months ended June 30, 2018, respectively, and $7,842 and $15,771, for the three and six-months ended June 30, 2017, respectively.

Fleet Lease

In January 2018, the Company entered into a vehicle lease arrangement with a rental company for three vehicles. The terms of the leases require total monthly payments of $1,619 is for three-years. These leases convert to month-to-month leases in January 2021 unless terminated. Total rent expense under this agreement was $5,621 and $9,351, for the three and six-months ended June 30, 2018, respectively, and $0 for the three and six-months ended June 30, 2017.