Commitments

6 Months Ended

Jun. 30, 2013

Commitments [Abstract]

COMMITMENTS

NOTE H — COMMITMENTS

During the six months ended June 30, 2013 we entered into a lease agreement with Wells Fargo Equipment Finance, Inc. (“Wells Fargo Equipment Finance”) to lease approximately $200,000 of laboratory and computer equipment. The lease agreement has a five year term with a $1 buyout option at the end of the term and an interest rate of approximately 6% per year.

During the first quarter of 2013, we also entered into an Installment Payment Agreement with Wells Fargo Equipment Finance for the purchase of a new billing system for approximately $145,000. During the three months ended June 30, 2013 we converted the Installment Payment Agreement into a lease agreement. The lease has a 36 month term with a $1 buyout option at the end of the term and an interest rate of approximately 5.5%. There will be a separate loan agreement for the final portion of the billing system when it is finished in the second half of 2013.

During the three and six months ended June 30, 2013 we also entered into lease schedules with several vendors for approximately $360,000 and $945,000 for the purchase of laboratory and computer equipment that we have received. The leases have a 36 month term with $1 buyout options at the end of the term and interest rates in the range between 4.5% and 13.5%.

During the three months ended June 30, 2013 we entered into lease schedules with several vendors for the purchase of approximately $1.3 million of laboratory equipment that we have not yet received. The leases have a 36 month term with $1 buyout options at the end of the term and interest rates in the range between 11.5% and 13.5%.