Commitments and Contingencies

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Commitments and Contingencies

Note 10 – Commitments and Contingencies

Facilities Lease:

     In February 2012, we entered into an amendment of the lease agreement for our current facilities at  E. Arques Ave. (64,776 sq. ft), which adds the 997 E. Arques Ave. building (15,000 sq. ft) to the agreement, also expiring November 2017. The amendment includes an abatement of the monthly rent of the additional facility for the first 7 months, limited to $126,000. The amendment removes the relocation option.

     We recognize rental expense on the facilities on a straight line basis over the lease term. Differences between the straight line rent expense and rent payments are classified as deferred rent liability on the balance sheet. Our future minimum lease payments at March 31, 2012 were as follows:

	Operating
	Lease
	Commitments
1-3 years		$	3,435
4-5 years			2,684
More than 5 years			931
Total		$	7,050

Legal Proceedings:

The Company may be involved, from time to time, in legal proceedings and claims arising in the ordinary course of its business. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that the Company believes will result in a probable loss. While there can be no assurances as to the ultimate outcome of any legal proceeding or other loss contingency involving the Company, management does not believe any pending matter will be resolved in a manner that would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.