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COMMITMENTS AND CONTINGENCIES
9 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
COMMITMENTS AND CONTINGENCIES

 

NOTE 10. COMMITMENTS AND CONTINGENCIES

 

The Company leases its location under a 12 month agreement, which started in September of 2011. As of March 31, 2012, future minimum annual rents under this agreement are as follows:

 

2012 $ 9,750
2013   6,500
     
Total $ 16,250
     

 

The Company decided to vacate its previous location, leased under a three year agreement, which started in November of 2010. While attempting to sub-lease these premises, it is continuing to make monthly rent payments. On March 12, 2012, a termination agreement has been reached with the landlord, and the Company was relieved of any future obligations.

 

Rent expense for the three months ended March 31, 2012 and 2011, was $11,916 and $1,377, respectively; and for the nine months ended March 31, 2012 and 2011, was $34,034 (including $6,067 of early termination penalty) and $3,442, respectively. Rent expense is reflected in general and administrative expenses in the accompanying statements of operations.