NOTE 8. LEASES

The Company’s research facility in Madison, Wisconsin is leased through February 28, 2019. Monthly rental expense is approximately $22,000. Other monthly rental expenses include common area maintenance and real estate taxes totaling approximately $13,000 per month. Utilities costs are approximately $16,000 per month. Including monthly payments recorded under a capital lease of approximately $21,000, total monthly costs are approximately $72,000 per month. The Company’s corporate headquarters are located in Pasadena, California; Rental expense is approximately $13,000 per month.

Facility and equipment rent expense, related to continuing operations, for the six months ended March 31, 2013 and 2012 was $281,000 and $214,000, respectively. From inception to date, rent expense was $4,407,000.

As of March 31, 2013, future minimum lease payments due in fiscal years under capitalized leases are as follows:


2013	$	128,423
2014		256,846
2015		256,846
2016		256,846
2017		256,846
2018		256,846
2019 and thereafter		107,020
Less interest		(129,006	)

Principal		1,390,665
Less current portion		(218,048	)

Noncurrent portion	$	1,172,616

As of March 31, 2013, future minimum lease payments due in fiscal years under operating leases are as follows:


2013	$	182,899
2014		434,229
2015		445,921
2016		457,961
2017		470,154
2018		359,370
2019 and thereafter		125,415

Total	$	2,475,949