Note 12 – Commitments and Contingencies

Leases

On March 8, 2016, the Company entered into a lease agreement with Oregon State University, to lease office and laboratory space located at HP Campus Building 11, 1110 NE Circle Blvd, Corvallis, Oregon, for approximately $400 monthly. On July 1, 2016, the Company entered into the first amendment to the lease agreement which increased the monthly lease expense to approximately $1,200. On October 1, 2017, the Company entered into a sublease agreement, which provides for additional office space and the monthly lease payment increased to approximately $1,800. The lease expired on June 30, 2018 and the Company extended the lease through June 30, 2019. The monthly lease payment increased to approximately $4,500 for the months ended June 30, 2018 through November 30, 2018, and increased to approximately $7,550 for the months ended December 31, 2018 through June 30, 2019.

On July 1, 2019, the Company entered into the fourth amendment to its lease with Oregon State University, which extends the lease expiration date to June 30, 2022. Beginning on July 1, 2020, and each July 1 thereafter, the monthly Operating Expense Reimbursement, as defined will be increased by no more than three percent.

As of December 31, 2019, future minimum lease payments are as follows:

Litigation 

In August 2019, Spencer Clarke LLC (“Spencer Clarke”) filed a lawsuit against Crown ElectroKinetics Corp. (“Crown”) in the Supreme Court of the State of New York, County of New York, Index No. 654592/2019.  Spencer Clarke has asserted claims arising from a 2018 Placement Agent Agreement (the “Placement Agent Agreement”) under which Spencer Clarke agreed to assist Crown in raising money for a potential public offering.  Spencer Clarke claims that Crown failed to make certain payments under that Placement Agent Agreement.  On September 27, 2019, Crown filed a motion to dismiss the complaint.  On October 7, 2019, Spencer Clarke amended the complaint.  On November 8, 2019, Crown filed an Answer and asserted Counterclaims against Spencer Clarke alleging breach of contract, anticipatory repudiation, and tortious interference with prospective business relations.  Crown disputes that it owes any money to Spencer Clarke and is vigorously defending the claims against it.