5. Deferred Rent

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

NOTE 5 - Deferred Rent

Deferred rent consists of the following at March 31, 2013 and December 31, 2012:

	March 31, 2013			December 31, 2012
Landlord-funded leasehold improvements	$	910,029		$	900,989
Less accumulated amortization		(61,560	)		(39,187	)
Total (current portion $111,250)		848,469			861,802
Straight line rent adjustment	$	60,865		$	88,277
Total deferred rent		909,334			950,079

During the quarter ended March 31, 2013, the Company recorded an additional $19,676 in deferred rent relating to leasehold improvements funded by the Company’s landlord as incentives under the facility lease, offset by payments to the landlord of $10,636. During the quarter ended March 31, 2013, the Company recorded $22,373 in deferred rent amortization of these landlord funded leasehold improvements.

Straight line rent adjustment represents the difference between cash rent payments and the recognition of rent expense on a straight-line basis over the terms of the lease.