Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

4. Commitments and Contingencies.

Operating Leases. The Company has an operating lease for its current facility which is in effect from August 2008 through February 2016. Rent expense under this lease, excluding operating costs, was approximately $445,000 in each of the years ended December 31, 2013 and 2012.

Minimum future lease obligations under this lease, excluding operating costs, are approximately as follows for the years ending December 31:

2014	$	484,000
2015	492,000
2016	82,000

Retailer Agreements. The Company has contracts in the normal course of business with various retailers, some of which provide for fixed or store-based payments rather than sign placement-based payments. During the years ended December 31, 2013 and 2012, the Company incurred $1,914,000 and $1,704,000 of costs related to fixed and store-based payments, respectively. The amounts are recorded in Cost of Services in the Company’s Statements of Operations.

Aggregate commitment amounts under agreements with retailers are approximately as follows for the years ending December 31:

2014	$	1,030,000
2015	608,000
2016	94,000

On an ongoing basis the Company negotiates renewals of various retailer agreements. Upon the completion of future contract renewals, the annual commitment amounts for 2014 and thereafter could be in excess of the amounts above.

Legal. The Company is subject to various legal matters in the normal course of business. Management believes the outcome of these matters will not have a material adverse effect on the Company’s financial position or results of operations.

- Definition

The entire disclosure for commitments and contingencies.

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