6. Commitments and Contingencies
|12 Months Ended|
Dec. 31, 2016
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||
On March 31, 2015, Focus entered into a two-year industrial/commercial multi-tenant lease with P.G.A. Lawson Limited Partnership, whereby we leased a 9,745 square foot warehouse with a 2,415 square foot office space inside. The lease commenced on April 20, 2015 and ends on April 30, 2017, and is subject to renewal. We paid $7,699 per month until May 1, 2016 when the rent increased by 3% to $7,930 per month. The warehouse is located at 829 Lawson Street in the City of Industry, California. Rent expense under this lease will be recognized over the life of the lease term on a straight line basis. Straight-line monthly rent expense over the life of the lease will be $7,812. During twelve months ended December 31, 2016, the variance between the straight line rent expense and the rent paid/abated was recorded as deferred rent at December 31, 2016.
Focus sub-leases a portion of the property to Pefecular. The lease is a non-cancelable operating lease with monthly rent of $5,000. The lease commenced on May 1, 2015 and expires on April 30, 2017. The sublease income for the twelve months ended December 31, 2016 amounted to $60,000. Rental income and expense are eliminated on the accompanying consolidated financial statements.
Focus sub-leases a portion of the property to Cape Robbin Inc. The lease is a non-cancelable operating lease with monthly rent of $4,400. The lease commenced on July 1, 2016 and expires on June 30, 2017. The sublease income for the twelve months ended December 31, 2016 amounted to $26,400.
Total rent expense was $67,700 and $65,409 for the twelve months ended December 31, 2016 and 2015, respectively.
Future minimum lease commitments are as follows:
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef