COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2013

COMMITMENTS AND CONTINGENCIES [Abstract]

The future minimum lease payments under the 2013 office lease and the 2010 equipment lease are as follows as of June 30, 2013:

Calendar Years	Future Lease Expense
2013 (Six months)	$	59,232
2014		120,136
2015		28,686
2016		---
2017		---
Total	$	208,054

Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred

As of June 30, 2013, the following table summarizes the compensation temporarily deferred since 2011:

Name	2013			2012		2011		Total
Kerry P. Gray (1)	$	24,000		$	220,673	$	140,313	$	384,986
Terrance K. Wallberg		6,633		$	24,230	$	36,539	$	67,402
Key executives		(20,000	)	$	27,253	$	20,986	$	28,239
Total	$	10,633		$	272,156	$	197,838	$	480,627

(1)

During 2013, Mr. Gray temporarily deferred compensation of $11,500 earned pursuant to a Separation Agreement and $105,000 for his duties as Chairman of the Executive Committee of the Company’s Board of Directors. Mr. Gray was also repaid $92,500 of temporarily deferred compensation, of which $80,000 was used by Mr. Gray for funding required pursuant to the March 2013 Offering.

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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