5. Deferred Rent

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

NOTE 5 - Deferred Rent

Deferred rent consists of the following at June 30, 2013 and December 31, 2012:

	June 30, 2013			December 31, 2012
Landlord-funded leasehold improvements	$	1,070,815		$	900,989
Less accumulated amortization		(85,192	)		(39,187	)
Total (current portion $111,250)		985,623			861,802
Straight line rent adjustment		68,582			88,277
Total deferred rent	$	1,054,205		$	950,079

During the six month period ended June 30, 2013, the Company recorded an additional $191,583 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 $21,757.  During the three and six month periods ended June 30, 2013, the Company recorded $23,632 and $46,005, respectively, 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.