13. Operating leases, commitments and security deposit

On August 25, 2006 we executed a 10-year agreement with Pirbright Holdings Limited, to lease 8,787 square feet of office space at the Kensington Centre, 66 Hammersmith Road, London W14 8UD, United Kingdom. Under this lease agreement our U.K. property rent, services and related costs are approximately £330 ($529) per annum, paid quarterly in advance. The Company has exercised its right to terminate the lease upon completion of the fifth year (August 24, 2011) and has found an alternative UK office location with no long-term lease commitment. This commitment will be on a month-to-month basis beginning August 1, 2011 with total monthly rental payments of £8($13) along with a rental deposit of £16 ($26). As such minimum rental payments subsequent to this date have not been included in the schedule below.

We also have a satellite office in Tokyo, Japan, with a two-year rental agreement that began in March 2010.

The following is a schedule of the future minimum rental payments required under operating leases that have initial or remaining non-cancellable terms in excess of one year:

Year Ending

2011 (remaining six months)	$	73
2012		28
Total	$	101

The total lease rental expense was $298 and $261 for the six months ended June 30, 2011 and 2010 respectively.

Other commitments

In July 2008 we entered into an agreement with a partner to develop interfaces for our software. We have committed to pay Euros € 1,445 ($2,079) over an expected thirty-six month period with the option to terminate the agreement with six months written notice. Through June 30, 2011 we have paid Euros €845 ($1,215). These payments will be recovered against future royalty payments, should the products be successfully commercialized. These payments have been expensed to the income statement and classified as research and development.