Page 32 - CALEA 2015 Annual Report

For the Year Ended December 31, 2015
NOTES TO FINANCIAL STATEMENTS
4. COMMITMENTS AND CONTINGENCIES
OFFICE LEASE
CALEA entered into an 85-month lease that expires on March 31, 2018. Under the terms of the lease, the rent escalates by 2.5% annually over the term of the lease. The landlord abated the first seven months’ rent. The cap on increased operating charges is 3%.
Under GAAP, lease incentives and scheduled rent increases over a lease term are recognized on a straight-line basis over the term of the lease. The difference between the GAAP rent expense and the required lease payments is recorded as deferred rent in the accompanying statement of financial position.
Future minimum lease payments, subject to increases based on operating expenses, real estate taxes and Consumer Price Index adjustments, are as follows:
For the Year Ending December 31, 2016
2017
2018
Total
Rent expense totaled $193,342 for the year ended December 31, 2015.
$213,608 218,948 36,641
$469,197
32 CALEA® THE GOLD STANDARD IN PUBLIC SAFETY