OPERATING LEASE COMMITMENTS

9 Months Ended

Sep. 30, 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 is actively attempting to sublease some, or all, of this space to conserve cash as well as more efficiently accommodate the projected needs of the facility.

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, with the right to terminate the lease on November 30, 2014 at a cost that the Company has approximated at $43,000.  The Company has reached an understanding with the landlord that, as of November 1, 2014,the lease will become month-to-month and the monthly rent will be reduced by 50% while the landlord attempts to rent some or all of the current space occupied by the Company.  The Company expects to be provided 60 days’ notice to vacate its current office space and the landlord has pledged to assist Echo in locating office space in one of the landlord’s Philadelphia area office buildings that would better fit the Company’s current needs on a month-to-month basis.

As of October 7, 2014, the Company terminated its lease of a corporate apartment in Franklin, Massachusetts prior to the expiration date of November 21, 2014.  The landlord has charged the Company an early termination fee of $305, which the Company has disputed due to a former Company employee agreeing to take over the lease as of October 7, 2014.

Future minimum lease payments for each of the next five years under the current terms of these operating leases at September 30, 2014 are approximately as follows:

	Franklin		Philadelphia		Total
Year Ending December 31,
2014	$	113,000	$	31,333	$	144,333
2015		457,000		—		457,000
2016		468,000		—		468,000
2017		389,000		—		389,000
2018		—		—		—
Total	$	1,427,000	$	31,333	$	1,458,333

The Company’s facilities lease expense, including accruals for lease incentives, was approximately $143,000 and $141,000 for the three months ended September 30, 2014 and 2013, respectively, and $418,000 and $530,000 for the nine months ended September 30, 2014 and 2013, respectively.