COMMITMENT AND CONTINGENCIES
|6 Months Ended|
Jun. 30, 2018
|Commitments and Contingencies Disclosure [Abstract]|
|COMMITMENT AND CONTINGENCIES||
NOTE 9 – COMMITMENT AND CONTINGENCIES
The Company entered into a non-cancellable operating lease of a manufacturing facility located in Gardena, CA commencing January 1, 2015 and ending on February 28, 2019. The base rent of the facility at the commencement date was $29,648 per month, which annually increases by 3%. Rent expense for the three months ended June 30, 2018 and 2017 was $97,192 and $94,361, respectively. Rent for the six months ended June 30, 2018 and 2017 was $194,383 and $188,721, respectively.
During the three months ended June 30, 2018, the Company entered into a non-cancellable operating lease of a manufacturing facility located in Gardena, CA commencing July 1, 2018 and ending on June 30, 2023. The base rent of the facility at the commencement date is $22,838 per month, which annually increases by 3%.
From time to time, the Company may be involved in general commercial disputes arising in the ordinary course of our business. The Company is not currently involved in legal proceedings that could reasonably be expected to have material adverse effect on its business, prospects, financial condition or results of operations.
As of June 30, 2018, the Company had a backlog of $5,827,005. The amount of backlog represents revenue that we anticipate recognizing in the future, as evidenced by purchase orders and other purchase commitments received from customers, but on which work has not yet been initiated or with respect to which work is currently in progress.
Backlog at June 30, 2018 was comprised of the following elements: 64% in purchases of DC power systems by telecommunications customers, 32% in purchases by military contractors; and 4% from other markets. The Company believes that the majority of its backlog will be shipped within the next three months. However, there can be no assurance that the Company will be successful in fulfilling such orders and commitments in a timely manner or that the Company will ultimately recognize as revenue the amounts reflected in its backlog.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef