Operating leases, commitments and security deposit

3 Months Ended

Mar. 31, 2012

Operating Leases Commitments and Security Deposit [Abstract]

Operating leases, commitments and security deposit [Text Block]

11.         Operating leases, commitments and security deposit

In 2006, we executed a 10-year agreement with Pirbright Holdings Limited, to lease office space in London, United Kingdom.  Under this lease agreement, the property rent, services and related costs were approximately £330 ($516) per annum, paid quarterly in advance. The Company exercised its right to terminate the lease upon completion of the fifth year (August 2011) and has found an alternative UK office location with no long-term lease commitment.  This commitment is on a month-to-month basis and began on August 1, 2011 with total monthly rental payments of £8 ($13) along with a rental deposit of £16 ($25). In February, 2012, the Company moved to a smaller office in the same location with month-to-month rental payments of £2 ($4) and a rental deposit of £4 ($6).

In September 2011, the Company entered into a 39 month lease agreement for office space located in Harrison, New York, United States terminating on November 30, 2014.  Under the agreement our total rental payments over the 39 month lease period are $240, inclusive of three months of free rent and a refundable rental deposit of $39.

A satellite office in Tokyo, Japan, was closed in January 2012, and the rental deposit of $128 was refunded to us.

In January 2012, the Company entered into a two year employment agreement with an employee at a base salary of $10,000 per month, with potential bonus payments as outlined in the agreement. This agreement provides for a maximum severance period of 12 months in the event of termination without cause as defined in the agreement.

On March 12, 2012, the Company entered into a one year financial advisory and consulting agreement with a national investment banking firm. The agreement can be canceled with two weeks written notice, three months from the date of the agreement. Under the agreement our total payments over the twelve month period are $60.

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

Year Ending
2012 (remaining nine months)	$	95
2013		78
2014		56
Total	$	229

The total lease rental expense was $36 and $143 for the three months ended March 31, 2012 and 2011, respectively.