OPERATING LEASE COMMITMENTS

3 Months Ended

Mar. 31, 2014

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.

The Company also leases a corporate apartment in Franklin, Massachusetts through November 21, 2014 (with the right to early termination) and a corporate apartment in Philadelphia, Pennsylvania on a month-to-month basis.

Future minimum lease payments for each of the next five years under these operating leases at March 31, 2014 are approximately as follows:

	Franklin		Philadelphia		Total
Year Ending December 31,
2014	$	332,000	$	142,000	$	474,000
2015		444,000		192,000		636,000
2016		454,000		196,000		650,000
2017		382,000		82,000		464,000
2018		—		—		—
Total	$	1,612,000	$	612,000	$	2,224,000

The Company’s facilities lease expense, including accruals for lease incentives, was approximately $80,000 and $290,000 for the three months ended March 31, 2014 and 2013, respectively.