Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

Note 10 Commitments and Contingencies

Litigation

From time to time the Company is involved in litigation concerning its properties and operations.  There is no known or pending litigation expected to have a material effect on its financial statements.

Leases

On January 15, 2008, the Company entered into a lease agreement with Wedge International for office space.  The term of the agreement is five years commencing on April 1, 2008.  The monthly lease payment is $12,527.The future minimum operating lease payments as of December 31, 2012, are as follows:

Year Ending December 31,
2013	$	38,985
Total future minimum lease payments	$	38,985

The Company also has various month-to-month equipment operating leases.  Rent expense for all leases totaled $148,577 and $152,229 for the years ended December 31, 2012 and 2011, respectively.

Employee Benefit Plans

The Company manages its staffing under an employee leasing agreement with Insperity, Inc. (“Insperity”).  Employees of the Company are eligible to participate in a 401(k) plan sponsored by Insperity.  Effective January 1, 2004, the Company adopted an Insperity multiple employer 401(k) plan in order to comply with the provisions of Revenue Procedure 2002-21.  Under the new multiple-employer plan, the Company will make a safe-harbor contribution of 3% of each employee's base salary regardless of the employee's contribution.  The Company believes that it is in substantial compliance with the Employee Retirement Income and Security Act of 1974 and other laws that would govern the plan.  

The Company's contributions to the 401(k) plan were $11,469 and $8,827 for the years ended December 31, 2012 and 2011, respectively.