Note 13: Operating leases, commitments and security deposit

Operating leases

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

In November 2012, the Company entered into a 24-month lease agreement for office space located in Saratoga Springs, New York, terminating on October 31, 2014. Under the agreement our total rental payments over the lease period are $2, and a security deposit of $2.

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
2013	$	23
2014		76
Total	$	99

The total lease rental expense for the three months ended September 30, 2013, and 2012, was $53 and $24, respectively, and for the nine months ended September 30, 2013, and 2012, was $109 and $88, respectively.

Commitments

On October 26, 2012, the Company entered into a one-year financial advisory and consulting agreement with an investment-banking firm. Compensation under the agreement includes cash consideration of $250 and 120,000 shares of restricted Common stock. These shares were subsequently issued on September 4, 2013. The stock was valued at $504, the closing market price on that date. For the three and nine months ended September 30, 2013, the Company expensed $566 (2012: $nil) and $691 (2012: $nil), respectively.

In November 2012, in connection with the sale of the Preferred Stock, the Company was required to enter into investor/public relations service agreements. Refer to Note 9 (Series A Convertible Preferred Stock) for terms of the service agreements. For the three and nine months ended September 30, 2013, the Company expensed $251 (2012: $nil) and $ 419 (2012: $nil), respectively.

Haller agreements

On September 30, 2013, the the Company and Michael Haller (“Haller”) agreed to terminate the June 1, 2013 Employment Agreement between the Company and Haller. In addition, the Company agreed to license certain intellectual property obtained from Digital Angel Corporation to Gammaker Pty. Ltd (“Gammaker”), a Singapore entity controlled by Haller in exchange for a 10% share of the gross revenues generated bv Gammaker on such licensed assets. The Company also sold to Haller certain trademarks owned by the Company for consideration of $6, which was subsequently received on October 17, 2013.