OPERATING LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 5. OPERATING LEASE COMMITMENTS

The Company leases approximately 37,000 square feet of manufacturing, laboratory and office space in a single-story building located in Franklin, Massachusetts under a lease expiring October 31, 2017.

The Company also leases approximately 7,900 square feet of corporate office space in a multi-story building located in Philadelphia, Pennsylvania under a lease expiring May 31, 2017.

Future minimum lease payments for each of the next five years under these operating leases at December 31, 2012 are approximately as follows:

Year Ending December 31, 2012:	Franklin		Philadelphia		Total
2013	$	421,000	$	185,000	$	606,000
2014		431,000		189,000		620,000
2015		441,000		194,000		635,000
2016		451,000		198,000		649,000
2017		383,000		83,000		466,000
Total	$	2,127,000	$	849,000	$	2,976,000

The Company’s facilities lease expense was approximately $339,000, $224,000 and $169,000 for the years ended December 31, 2012, 2011 and 2010, respectively.