Note 6 - Commitments and Contingencies

Revolving Credit Facility   

On January 31, 2008, the Company entered into a revolving credit line with a bank. The credit facility provides for $100,000 at prime plus 0.5%, 3.75% at December 31, 2017, and is secured by all assets of the Company and personally guaranteed by the Company’s principal shareholder. As of December 31, 2017, the Company has paid this in full.

Operating Leases

The Company currently leases office space in Melville, NY, and Warwick, RI.

The lease for office space in Melville, NY calls for monthly payments of $3,498 beginning July 1, 2016. This lease commenced on June 1, 2016 and continued through December 31, 2017. On July 20, 2017, the Company rented additional office space in Melville, NY and commences on August 1, 2017 and continued through December 31, 2017. This new lease for the additional office space calls for monthly payments of $1,464.

A second location that was part of the acquisition of ABC. is also located in Melville, and calls for monthly payments of $8,382 with a lease terminating in August 31, 2019.

A new lease for office space in Melville, NY was entered into on November 20, 2017 for expanded office space. This lease will commence upon completion of the new office space. The term of this lease is for five years and three months and has a fixed rent schedule.

The lease for office space in Warwick, RI calls for monthly payments of $2,324 beginning February 1, 2015 which escalated to $2,460 on February 1, 2017. This lease commenced on February 1, 2015 and continues through January 31, 2019.

Minimum obligations under these lease agreements are as follows:

Rent expense for the year ended December 31, 2017 and 2016 was $215,436 and $147,808 respectively.