OPERATING LEASE COMMITMENT

9 Months Ended

Sep. 30, 2011

OPERATING LEASE COMMITMENT [Abstract]

(4) OPERATING LEASE COMMITMENT

The Company leases approximately 13,000 square feet of manufacturing, laboratory and office space in a single facility located in Franklin, Massachusetts under a lease expiring March 31, 2014.

Effective as of May 2, 2011, the Company commenced a lease for approximately 5,400 square feet of corporate office space in a single facility located in Philadelphia, Pennsylvania under a lease expiring April 30, 2014.

Future minimum lease payments for the next 5 years under these operating leases at September 30, 2011 are approximately as follows:

For the period ending December 31,	Franklin		Philadelphia		Total
2011	$	36,000	$	31,000	$	67,000
2012		144,000		128,000		272,000
2013		144,000		132,000		276,000
2014		36,000		44,000		80,000
2015		-		-		-
Total	$	360,000	$	335,000	$	695,000

The Company's facilities lease expense was approximately $67,000 and $44,000 for the three months ended September 30, 2011 and 2010, respectively, and $153,000 and $138,000 for the nine months ended September 30, 2011 and 2010, respectively.

The Company leases copiers in the Philadelphia office through a non-cancelable operating lease at a cost of approximately $635 per month. The Company is obligated to pay approximately $2,000, $8,000, $8,000 and $3,000 for 2011, 2012, 2013 and 2014, respectively. The total is approximately $21,000 over the course of the lease.

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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