LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2011

Note 7. LEASE COMMITMENTS

The Company was obligated under an operating lease for its Florida office, which called for minimum annual rentals of $23,000. The lease expired in December 2010. The Company continued to lease those premises on a month-to-month basis through April 2011.

In March 2011, the Company entered into an operating lease for its new Florida office and warehouse facilities, which expires in March 2013 and provides for minimum annual rentals of approximately $144,000.

The remaining minimum annual rents for the years ending December 31 are:



2011	$	36,000

2012		144,000
2013		36,000

Total	$	216,000

Rental expense charged to operations for the three and nine months ended September 30, 2011 and 2010 aggregated approximately $38,248 and $71,063 and $7,341 and $17,577, respectively.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References+ Details