Lease Obligations

12 Months Ended

Dec. 31, 2014

10. Lease Obligations

The Company leases its facilities under operating leases. For the years ended December 31, 2014, 2013, and 2012 rent expense was $1,068,972, $1,925,813, and $1,697,153, respectively.

In January 2006, the Company moved its primary operations into new facilities. The facility is subject to a lease which expires in December 31, 2018. Under the terms of the lease, the Company has options to renew for up to three additional years. The lease contains an escalating rent provision which the Company has straight-lined over the term of the lease.

In the third quarter of 2013, the Company modified the existing lease agreement to terminate approximately 13,000 square feet of unimproved space. The costs associated with the termination were $515,138, and were accrued as a rent liability as of September 30, 2013. As of December 31, 2014, the remaining accrued costs associated with the termination were $354,680.

The future minimum lease payments under non-cancelable leases as of December 31, 2014 are as follows:



Year		Operating Lease
2015	$	1,584,709
2016		1,930,829
2017		1,955,243
2018		2,008,832
Total minimum lease payments	$	7,479,613

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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