OPERATING LEASE COMMITMENTS

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 4. 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 5 years under these operating leases are as follows:

	Franklin		Philadelphia		Total
For the period ending March 31,
2013	$	319,000	$	138,000	$	457,000
2014		434,000		187,000		621,000
2015		444,000		192,000		636,000
2016		454,000		196,000		650,000
2017		382,000		82,000		464,000
Total	$	2,033,000	$	795,000	$	2,828,000

 The Company’s facilities lease expense, including accruals for lease incentives, was approximately $290,000 and $77,000 for the three months ended March 31, 2013 and 2012, respectively.