LEASING ARRANGEMENTS

12 Months Ended

Dec. 31, 2012

LEASING ARRANGEMENTS [Abstract]

LEASING ARRANGEMENTS

15. LEASING ARRANGEMENTS: The Company entered into a sale-leaseback of its New York operating facility in 2001. Effective January 1, 2011, the Company entered into an amendment to the lease. The amendment extended the lease expiration date to December 31, 2021 and modified the annual lease payments as follows; approximately $390,000 for the years 2011 through 2013, approximately $424,800 for the years 2014 through 2016, and approximately $463,200 for the years 2017 through 2021. The Company's landlord agreed, at its sole expense, to make certain improvements to the facility.
In April 2009, the Company's TDL subsidiary entered into a five year lease for a new operating facility commencing November 1, 2009 and expiring November 2014. Annual rent payments pursuant to an amendment to the lease, will be approximately $183,600 for the first four years of the lease and approximately $213,600 for year five of the lease. The lease includes two five year renewable options. Additional operating leases are for the ICS facility, a sales office, vehicles and office equipment.

The Company has escalation clauses which are recognized on a straight line basis over the life of the lease. The amounts are recorded in accrued expenses in the accompanying consolidated financial statements.

Future minimum lease payments as of December 31, 2012 under all operating lease agreements that have initial or remaining noncancelable lease terms in excess of one year are as follows:

Year ending December 31,
2013		779,000
2014		694,000
2015		475,000
2016		475,000
2017 and thereafter		2,358,000
Total future minimum lease payments	$	4,781,000

Rent expense for operating leases was approximately $715,000 and $805,000 for the years ended December 31, 2012 and 2011, respectively.