Note 7 - Leases

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements

Leases of Lessee Disclosure [Text Block]

Note 7 - Leases

The Company leases its facilities and certain equipment under capital and operating leases that expire through the year 2017.

Future minimum rentals under operating and capital leases for continuing operations are as follows:

Years ending December 31,	Operating		Capital
2012	$	793,000	$	18,000
2013		747,000		20,000
2014		744,000		22,000
2015		740,000		14,000
2016		756,000		-
Thereafter		446,000		-
Total	$	4,226,000	$	74,000

For continuing operations total rent expense under all operating leases was $726,000 and $716,000 for the years ended December 31, 2011 and 2010, respectively.  For discontinued operations, total rent expense was $110,000 and $260,000 for the years ended December 31, 2011 and 2010 respectively.

Most of the operating leases for facilities include options to renew the lease at the then current fair market value for periods of one to five years.  In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases.

On February 24, 2006, the Company entered into a lease for approximately 19,600 square feet located in Van Nuys, California intended to house corporate offices, a blood component manufacturing lab and a blood products distribution operation as well as the now discontinued mobile blood operations. The Company occupied this facility in November 2006.  The rent for this facility started at approximately $36,000 per month; however, the lease provides for an annual 3% rent escalation upon the annual anniversary of the beginning of the lease term and for increases in the cost of common area maintenance. The rent as of December 31, 2011 was $42,000. The lease on this space expires July 31, 2017; however, the Company has one five-year option to extend this lease at the then current market price.  On April 11, 2007, the Company entered into an amendment to add approximately 5,735 square feet to this lease intended to house a donor center and supply warehouse.  This amendment added $13,250 per month in rent expense, which adjusts annually by 3.9% on the anniversary of the lease commencement date.  The rent on this space was $15,400 as of December 31, 2011. As part of the lease agreement, the Company received approximately $508,000 in tenant improvement allowance from the landlord.

The Company recognizes the total rent obligation for this facility, net of the tenant improvement allowance, as rent expense on a straight line basis over the term of the lease. The Company allocates on a straight-line basis the total lease payments, including rent escalation, abated rent, and tenant improvement reimbursement, over the term of the lease.  As a result, the Company recognizes approximately $42,000 in monthly rent expense over the term of the lease.   The Company recorded $69,000 and $66,000 in deferred rent included in accrued expenses associated with this lease to be utilized over the subsequent twelve months as of December 31, 2011 and 2010.  As of December 31, 2011, and 2010 the Company had remaining $464,000 and $533,000 deferred rent associated with this lease, included in other long-term liabilities on the balance sheet.

On August 18, 2010, the Company entered into a capital lease with Horiba Financial Services for the lease of equipment used in processing in the Company’s Van Nuys laboratory facility. The total value of the lease is $98,000 at 10.5% interest which is payable monthly in the amount of $2,100 and expires in July 2015.