3. Deferred Rent

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Deferred Rent

3. Deferred Rent

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

	2012			2011
Landlord-funded leasehold improvements	$	900,989		$	––
Less accumulated amortization		(39,187	)		––
Total (current portion $111,250)		861,802			––
Straight line rent adjustment		88,277			12,267
Total deferred rent	$	950,079		$	12,267

During the year ended December 31, 2012, the Company recorded $900,989 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 and November 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 the year ended December 31, 2012 the Company recorded $39,187 in deferred rent amortization of these landlord funded leasehold improvements.

In addition, during the year ended December 31, 2012, the Company recorded deferred rent of $88,277 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.