On March 31, 2015, we 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 commences on April 20, 2015 and ends on April 30, 2017. We will pay $7,699 per month until May 1, 2016 when the rent increases 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 on a straight-line basis. Straight-line monthly rent expense over the life of the lease will be $7,812. During three months ended June 30, 2015, the variance between the straight line rent expense and the rent paid/abated was recorded as deferred rent at June 30, 2015.

The Company sub-leases a portion of the property to Pefecular Inc., an entity related by certain common management and control. 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 three months ended June 30, 2015 amounted to $10,000.

Total rent expense was $17,527 and $0 for the three months ended June 30, 2015 and 2014, respectively.

Future minimum lease commitments are as follows:

On December 29, 2014 we entered into a consulting agreement with Morepro Marketing, Inc., which was submitted to the Commission on January 5, 2015. Under the terms of this agreement, we agree to pay Morepro Marketing, Inc. a minimum of $675 per month, plus reimbursement of any expenses incurred by Morepro Marketing, Inc. There is a ninety-day minimum timeframe for each new client to cancel, after which either party can terminate after thirty days’ notice. We currently pay $675 per month, and will need to give at least thirty days’ notice if we choose to cancel their services.