8. COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

8. COMMITMENTS AND CONTINGENCIES

NOTE 8 – COMMITMENTS AND CONTINGENCIES

Lease Agreements

Pursuant to a lease originally dated January 2006, we currently occupy approximately 11,800 square feet of office space located at 7650 E. Evans Rd., Suite C, Scottsdale, Arizona on a month-to-month basis. The total lease expense is approximately $9,600 per month, payable in cash and Common Stock of the Company.

We are leasing office space on a month-to-month basis in West Hollywood, California. We also lease an office in Los Angeles for use by our audio team in connection with our AfterMaster product under a lease expiring on December 31, 2014. The total lease expense for both facilities is approximately $6,040 per month, and the total remaining obligations under these leases at March 31, 2013 were approximately $121,560.

We lease space at mall locations for MyStudio generally pursuant to one-year leases. The monthly rent for these spaces is at market rates commensurate with other kiosk operations. As we expand, we will continue to secure space for our recording studios at various venues and locations throughout the country.

Rent expense for the period ended March 31, 2013 was $110,513, of which $53,121 was paid in cash and $57,392 was paid in Common Stock. Rent expense for period ended March 31, 2012 was $88,644, of which $20,087 was paid in cash $68,557 was paid in Common Stock.

Below is a table summarizing the annual operating lease obligations over the next 5 years:

Year	Lease Payments ($)
2013	$	18,120
2014		72,480
2015		36,240
Total	$	126,840