Lease Obligations

9 Months Ended

Sep. 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				38,928
	2015				156,881
	2016				161,588
	2017				166,435
	2018				127,614
					651,446

Total rent expense under these operating type leases for the nine months ended September 30, 2014 and 2013 was $113 thousand and $110 thousand, respectively, and $713 thousand for the period from inception to September 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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