LEASE OBLIGATIONS

6 Months Ended

Jun. 30, 2014

6.	LEASE OBLIGATIONS

On October 1, 2011 the Company began leasing operating facilities under an agreement expiring on September 30, 2018. Future minimum monthly lease payments under the agreement are currently $12,598 and increase 3% in October of each year. Prepaid expenses and deposits include a security deposit equal to $12,275. Aggregate maturities of lease obligations are as follows:

2014			76,723
2015			156,881
2016			161,588
2017			166,435
2018			127,614
			689,241

Total rent expense under these operating type leases for the six months ended June 30, 2014 and 2013 was $76K and $73K, respectively, and $675K for the period from inception to June 30, 2014.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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