There is no current or pending litigation of any significance with the exception of the matters that have arisen under, and are being handled in, the normal course of business.

Leases 

On August 1, 2013, the Company terminated its previous lease, and entered into a new non-cancellable lease with a 5-year term, expiring July 31, 2018 at a monthly rent of $13,075. On February 1, 2014, the Company amended its lease of office space in Santa Barbara, California, in order to reduce the leased area as well as the monthly lease from $13,750 per month to $5,830 per month.

Total rent expense under these leases in effect during the years ended December 31, 2014, 2013 and 2012, was $82,376, $201,500, and $210,635, respectively which are included as part of Operating Expenses in the attached consolidated statements of operations. Remaining lease commitments under the non-cancellable office lease at December 31, 2014 were $250,690 through the end of 2018. The following is a schedule by years of future minimum rental payments required under the non-cancellable office leases as of December 31, 2014.

Beginning July 2013, the Company subleased a portion of the second floor office space under its Santa Barbara office lease on a month-to-month basis. Total rents collected under these sublease agreements in the year ended December 31, 2014 and 2013 were $795 and $11,085, respectively, which were included as an offset to Operating Expenses in the attached consolidated statements of operations. The rent expense for the Santa Barbara facility net of sublease rents collected for the year ended December 31, 2014 and 2013 was $81,851 and $160,535, respectively.