12.

Insurance Claim

On September 30, 2013, the Company experienced damage to storage facilities and equipment due to a fire. As of December 31, 2013, the Company has incurred approximately $131,000 toward the repair of the facility and replacement of equipment. The Company filed an insurance claim and received $300,000 toward the settlement of the insurance claim.

The insurance proceeds approximately $658,000 , net of expenses not related to the replacement of the facility or equipment, is recorded in income from operations in the accompanying 2013 statement of operations.

The Company estimates that all of the remaining costs related to this event, net of $100,000 insurance deductible, will be reimbursed by insurance. However, actual amounts reimbursed could differ from estimate. Insurance proceeds, of approximately $650,000 is expected to be received during 2014 and have been recorded as other receivable at December 31, 2013.