5. Deferred Rent

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

NOTE 5 - Deferred Rent

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

	September 30, 2013			December 31, 2012
Landlord-funded leasehold improvements	$	1,059,186		$	900,989
Less accumulated amortization		(109,127	)		(39,187	)
Total (current portion $111,250)		950,059			861,802
Straight line rent adjustment		79,498			88,277
Total deferred rent	$	1,029,557		$	950,079

During the nine month period ended September 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 $33,386.  During the three and nine month periods ended September 30, 2013, the Company recorded $23,925 and $69,940, 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.