OPERATING LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Note 4. OPERATING LEASE COMMITMENTS

The Company leases approximately 13,000 square feet of manufacturing, laboratory and office space in a single facility located in Franklin, Massachusetts under a lease expiring March 31, 2014. Beginning June 1, 2012, a lease amendment increased the total space to 37,050 square feet and extended the expiration date to October 31, 2017.

The Company also leases approximately 5,400 square feet of corporate office space in a single facility located in Philadelphia, Pennsylvania under a lease expiring April 30, 2014. Beginning June 1, 2012, a lease amendment increased the total space to 7,861 square feet and extended the expiration date to May 31, 2017.

Future minimum lease payments for each of the next 5 years under these operating leases are as follows:

	Franklin		Philadelphia		Total
For the period ending December 31,
2012	$	104,000	$	45,000	$	149,000
2013		424,000		183,000		607,000
2014		434,000		187,000		621,000
2015		444,000		192,000		636,000
2016		454,000		196,000		650,000
Total	$	1,860,000	$	803,000	$	2,663,000

The Company’s facilities lease expense was approximately $56,000 and $67,000 for the three months ended September 30, 2012 and 2011, respectively, and $207,000 and $153,000 for the nine months ended September 30, 2012 and 2011, respectively.