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Note 13 - Commitments

12 Months Ended

Dec. 31, 2012

a) Operating Leases

The Company leases its office, sales and manufacturing facilities under non-cancelable operating leases with varying terms expiring in 2012 to 2015. The leases generally provide that the Company pay the taxes, maintenance and insurance expenses related to the leased assets.

We currently have three leases for office facilities located in the United States with lease expirations occurring December 31, 2013 to March 31, 2015. The total average monthly rent for these leases in 2013 is approximately $10,000 per month.

	Operating
	Leases
2013	$	120,345
2014		67,413
2015		51,211
Total minimum lease payments	$	238,969

Total rent expense was $117,517 and $251,839 for the year ended December 31, 2012 and 2011 respectively.

b) Capital Lease Payable

On July 15, 2011 the Company entered an equipment lease financing agreement with Royal Bank America Leasing to purchase approximately $58,122 in equipment for our communication services. The terms of which included monthly payments of $2,211 per month over 30 months and a $1.00 buy-out at end of the lease term. As of December 31, 2012, the outstanding balance was $25,089 and accumulated depreciation associated with the assets under capital lease was $16,624.

Future minimum lease payments required under capital leases

	Capital
	Leases
2013	$	26,532
Total future payments		26,532
Less: amount representing interest		1,443
Present value of minimum lease payments	$	25,089

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

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