Commitments

9 Months Ended

Sep. 30, 2013

11. Commitments

Operating lease – The Company leases office space in New York City to conduct its business. The Company’s previous lease began in October 2011 and was terminated as of September 30, 2013. $24,742 and 83,334 shares of the company’s common stock will be issued to the former lessor in lieu of the balance due of $49,742 as of September 30, 2013. Non-contingent rent increases were being amortized over the life of the lease on a straight line basis. As of September 30, 2013 the reversal of the accrued rent increases resulted in a decrease of rent expense. The Company’s current lease began on October 1, 2013 and expires December 31, 2014. The rental expense charged to operations for the three months ended September 30, 2013 and 2012 amounted to $3,898 (net of $23,773 in reversal of accrued rent upon termination of lease) and $28,217, respectively. The rental expense charged to operations for the nine months ended September 30, 2013 and 2012 amounted to $57,672 and $84,651, respectively. Future minimum rental payments on this lease are as follows for the year ending December 31,:

2014		$	71,999
		$	71,999

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

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