5. Deferred Rent

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

NOTE 5 - Deferred Rent

Deferred rent consists of the following at September 30, 2012 and December 31, 2011:

	September 30, 2012		December 31, 2011
Landlord-funded leasehold improvements	$	766,082	$	-
Straight-line rent adjustment		46,189		-
Total	$	812,271	$	-

During the nine months ended September 30, 2012, the Company recorded $785,112 in deferred rent relating to leasehold improvements funded by the Company’s landlord as incentives under the facility lease, which was amended in March 2012.  The deferred rent related to the leasehold improvements will be amortized over the life of the lease. Amortization commenced in the third quarter of 2012, during which the Company recorded $19,030 in deferred rent amortization.

In addition, during the third quarter of 2012, the Company recorded deferred rent of $46,189 which represented the difference between cash rent payments and the recognition of rent expense on a straight-line basis over the terms of the lease.