Note 6 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies Disclosure [Text Block]

NOTE 6 – COMMITMENTS AND CONTINGENCIES

Operating Leases

Phototron leased office and warehouse facilities under a lease with an initial term ending on December 31, 2007, with an automatic 3 year extension to December 31, 2010, requiring monthly payments of $3,554.   In January 2011, the lease term expired and Phototron rented the facility on a month-to-month basis.  In February 2011, we entered into a new lease for office facilities. The landlord, Woodcourt, LLC is an affiliate of a stockholder of our company.  The terms of the new lease provide for monthly rental expense of $8,066 with annual cost of living adjustments.  The new lease expires in January 2014.

In May 2011, we entered into a new lease for our warehouse facility.  The terms of the new lease provide for monthly rental expense of $4,065 and a lease term of 13 months.  The new lease expires in May 2012.

Rent expense was $103,960 and $21,321 for the nine months ended September 30, 2011 and 2010 respectively.

Future minimum rental payments for each of the remaining years are as follows:

Years Ending December 31,
Remainder of 2011	$	36,393
2012		148,644
2013		152,556
2014		30,034
Total	$	367,627