11.          COMMITMENTS AND CONTINGENCIES:

Lease Commitments - The Company leased warehouse and office space for the equipment and operations located in Gardena, CA.  The lease term continued through July 2015.  The Company was under a month-to-month agreement August 2015 through January 2016.

Total rent expense for the year ended December 31, 2016 and 2015 was $2,250 and $50,035, respectively.

Vendors and Debt - The Company has significant liabilities as of December 31, 2016 with limited cash flow generated by the sale of Company assets and revenue. The Company has $300,678 in accounts payable and accrued expenses from continuing operations.  In addition, the Company has $2,053,515 in debt and accrued interest from continuing operations.  The Company will work with their vendors and lenders to establish payment plans, explore extensions and conversion of debt.