LEASE COMMITMENT

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

LEASE COMMITMENT

LEASE COMMITMENT

Until April 2011, our Lexington, Kentucky offices were located in space we leased from a partnership in which our Chairman and CEO owns an interest. The lease is non-cancelable and runs through August 2012 at a monthly rent of $6,975. Total expense for this property was $41,850 through the June 30, 2012 and $83,700 for the year ended December 31, 2011. Future minimum lease obligations on this property for 2012 until the termination of this lease are $13,950.  

In 2011, we leased new office space at 145 Rose Street, Lexington, Kentucky. The owner of the building is an LLC owned by unrelated parties. Our monthly rent for the initial five year term is $8,000 per month. We have an option to terminate the lease by giving 90 days notice before the third anniversary of the lease and by paying one year's rent as a penalty for early termination. The initial term of the lease is five years commencing on April 1, 2011 and terminates on March 31, 2016. We have three renewal options of three years each. Rent will escalate based on the Consumer Price Index for all U.S. City Average, all items (1982-1984 = 100).

We began leasing space in New York from a temporary office space provider for the year ended December 31, 2012. We have a renewal option with two months free rent for 2013. The 2012 rent is $3,110 per month for March through October. We do not pay rent for January, February, November or December.

Future minimum annual lease payments, including renewals, for the twelve month periods ended December 31 are as follows:

12 Month Period Ended December 31	Amount
2012	$	180,590
2013	96,000
2014	96,000
2015	96,000
2016	8,000
	$	476,590