10. Commitments & Contingencies

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

NOTE 10 - Commitments & Contingencies

Legal Proceedings

We are a party in a number of legal matters filed in the state of New York by the Company or John G. Baust, the Company’s former Chief Executive Officer, and members of his extended family, that are described more fully in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  During the six months ended June 30, 2013, there were no significant developments related to these complaints.  We have not made any accrual related to future litigation outcomes as of June 30, 2013 and December 31, 2012.

Leases

In November of 2012 we signed an amended lease agreement, which expanded the premises leased by us from the landlord to approximately 26,000 rentable square feet. The term of the lease was extended to July 31, 2021. The amendment includes two (2) options to extend the term of the lease, each option is for an additional period of five (5) years, with the first extension term commencing, if at all, on August 1, 2021, and the second extension term commencing, if at all, immediately following the expiration of the first extension term. In accordance with the amended lease agreement, our monthly base rent increased to approximately $46,000 effective August 1, 2013, , with scheduled annual increases each August. We will be required to pay an amount equal to our proportionate share of certain taxes and operating expenses.