CONTINGENT LIABILITIES AND COMMITMENTS

12 Months Ended

Dec. 31, 2011

CONTINGENT LIABILITIES AND COMMITMENTS [Abstract]

CONTINGENT LIABILITIES AND COMMITMENTS

17. CONTINGENT LIABILITIES AND COMMITMENTS

In July 2011, the Company executed a lease (the “Lease”) with Brandywine Operating Partnership, L.P. (Brandywine), a Delaware limited partnership for a 10,870 square foot premises located in Lawrenceville, New Jersey.  In October 2011, the Company relocated its offices to Lawrenceville, New Jersey from Columbia, Maryland.  The lease has a term of 66 months and provides for 6 months rent free, with the first monthly rent payment of approximately $23,000 due in April 2012.  Also, as required by the Lease, the Company provided Brandywine with an irrevocable and unconditional standby letter of credit for $250,000, which the Company secured with an escrow deposit at its banking institution of this same amount.  The standby letter of credit will be reduced by $50,000 on each of the 19th, 31st and 43rd months from the initial term, with the remaining $100,000 amount remaining until the Lease Term has expired.

Following is a summary of the future minimum payments required under leases that have initial or remaining lease terms of one year or more as of December 31, 2011:

	Capital Leases		Operating Leases
For the year ending December 31:
2012	$	126,087	$	207,889
2013		67,817		281,261
2014		11,303		286,696
2015		-		292,131
2016 and beyond		-		372,298
Total minimum lease payments		205,207	$	1,440,275
Less amounts of lease payments that represent interest		23,318
Present value of future minimum capital lease payments		181,889
Less current obligations under capital leases		110,287
	$	71,602