Commitments and Contingent Liabilities

6 Months Ended

Jun. 30, 2011

Commitments and Contingent Liabilities

7. Commitments and Contingent Liabilities

Operating Leases

The Company occupied approximately 16,000 square feet of office and storage space under Commercial Sublease Agreement with Masters Healthcare, LLC, (a related party – see Note 9) which expired on March 31, 2011. From April 1, 2011 through June 30, 2011, the lease has been in effect on a month to month basis, with a monthly lease rate of $14,125, pursuant to the provision of the sub-lease.

On June 15,2011, the Company entered into a lease agreement for approximately 28,000 square feet of office and storage space with an entity effective July 1, 2011.  The monthly lease rate of $4,393 is in effect from January 2012 through December 2013, which will be recorded on a straight line basis over the term of the lease.

During the three months ended June 30, 2011 and 2010, the Company recorded rent expense of $51,195 and $9,000, respectively, and for the six months ended June 30, 2011 and 2010, $94,440 and $21,000, respectively.

Litigation

From time to time, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Currently, the Company is not involved in any such matters.