Quarterly report pursuant to Section 13 or 15(d)

Other Liabilities

v2.4.0.6
Other Liabilities
3 Months Ended
Mar. 31, 2013
Other Liabilities [Abstract]  
Other Liabilities

9. Other Liabilities

 

Deferred Lease Incentive

 

            On June 29, 2009, the Company entered into a five year office lease agreement as disclosed in Note 16.  The lessor agreed to grant a leasehold improvement allowance of $100,000 to the Company to be used for the construction cost of improvements to the leased property, which included architectural and engineering fees, government agency plan check, permit and other fees, sales and use taxes, testing and inspection costs, and telephone and data cabling and wiring in the premises.  The Company accounts for the benefit of the leasehold improvement allowance as a reduction of rental expense over the five-year term of the office lease.

The following table sets forth the deferred lease incentive:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

December 31,

 

 

2013

2012

 

 

 

 

 

 

Deferred lease incentive

 

$

100,000 

$

100,000 

Less accumulated amortization

 

 

(75,000)

 

(70,000)

 

 

 

 

 

 

Balance

 

$

25,000 

$

30,000 

 

Deferred Office Lease Expense

 

The office lease agreement, disclosed above, requires an initial annual base rent with annual increases over the next five years.  The Company recognizes rental expense on a straight-line basis over the term of the lease, which resulted in a deferred rent liability of $30,184 and $35,417 as of March 31, 2013 and December 31 2012, respectively.