XML 31 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTE 7 Commitments
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Commitments

NOTE 7 — Commitments

 

The Company operates its headquarters under a non-cancelable operating lease which provides for the lease by the Company of approximately 37,100 square feet of space in Newark, California. On August 30, 2010, the Company amended its commercial building lease agreement. The amendment was effective as of August 23, 2010 and extended the lease termination date from June 30, 2012 to June 30, 2018. The Company's base rent under the facilities lease was abated in its entirety in the amount of $31,983 for each of the months of September through December 2010. In addition, the base rent for the months of January 2011 through June 2012 was reduced by $1,278 per month. The base rent under the facilities lease shall be $29,705 per month for the period from July 1, 2012 through June 30, 2013. The base rent increases annually thereafter at a rate of four percent per year for the remaining five years under the facilities lease. Future minimum lease payments under all operating leases are as shown below:

 

Annual minimum payments: Amount
2012 $368,692
2013  363,587
2014  378,130
2015  393,256
2016 to 2018  1,051,173
Total minimum payments $2,554,838

 

 Rental expense under all operating leases was $358,280, $347,768, and $351,532, for each of the years ended December 31, 2011, 2010, and 2009, respectively. The amount of related deferred rent at December 31, 2011 and 2010 was $183,380 and $197,387, respectively.

 

As of December 31, 2011, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $5,248,000.