Commitments And Contingencies

12 Months Ended

Dec. 31, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

4.Commitments and Contingencies. 

Operating Leases.  The Company conducts its operations in a leased facility. On March 27, 2008, the Company entered into an operating lease for its current facility which is in effect from August 2008 through February 2016.   Rent expense under this lease, excluding operating costs, was approximately $445,000 in each of the years ended December 31, 2012 and 2011.

Minimum future lease obligations under this lease, excluding operating costs, are approximately as follows for the years ending December 31:

2013	$	474,000
2014		484,000
2015		492,000
2016		82,000

Retailer Agreements.  The Company has contracts in the normal course of business with various retailers, some of which provide for fixed or store-based payments rather than sign placement-based payments.  During the years ended December 31, 2012 and 2011, the Company incurred $1,704,000 and $1,371,000 of costs related to fixed and store-based payments, respectively. The amounts are recorded in Cost of Services in the Company’s Statements of Operations.

Aggregate commitment amounts under agreements with retailers are approximately as follows for the years ending December 31:

2013	$	1,497,000
2014		971,000
2015		503,000
2016		98,000

On an ongoing basis the Company negotiates renewals of various retailer agreements. Upon the completion of future contract renewals, the annual commitment amounts for 2013 and thereafter could be in excess of the amounts above.

Legal.On February 9, 2011, the Company and News America entered into a settlement agreement to resolve the antitrust and false advertising lawsuit that had been outstanding for several years.  Pursuant to the Settlement Agreement, News America paid the Company $125,000,000, and the Company paid News America $4,000,000 in exchange for a 10-year arrangement to sell signs with price into News America’s network of retailers as News America’s exclusive agent (see Note 2).

A reconciliation of the settlement proceeds to the gain from litigation settlement recognized in the Company’s Statements of Operations is as follows:

Year Ended December 31	2012		2011
Settlement proceeds	$	—	$	125,000,000
Less contingent attorneys' fees		—		(31,250,000)
Less bonuses paid to employees		—		(3,988,000)
Gain from litigation settlement, net	$	—	$	89,762,000

During the years ended December 31, 2012 and 2011, the Company incurred legal fees of $124,000 and $1,588,000. Legal fees and expenses are expensed as incurred and are included in general and administrative expenses in the Company’s statements of operations.

The Company is subject to various other legal proceedings in the normal course of business. Management believes the outcome of these proceedings will not have a material adverse effect on the Company’s financial position or results of operations.