Capital Lease- Related Party

12 Months Ended

Dec. 31, 2011

5.	Capital Lease – Related Party

On November 3, 2009, the Company entered into a capital lease with a related party of the Company for certain equipment to be used in the expansion of the Company’s capabilities and product lines which was appropriately disclosed in the Company’s Form 8-K filing on November 3, 2009. See Note 10, Related Party Transactions, of the accompanying consolidated financial statements for information on the related party transaction. Monthly payments of $7,500 which include an imputed fixed interest rate of 2.00% commenced November 3, 2009 and will continue through the fourth quarter of 2016. At December 31, 2011 the present value of the minimal lease payment is approximately $414,000 (after subtracting approximately $21,000 of imputed interest).

Aggregate payments required under the capital lease subsequent to December 31, 2011 are as follows: 2012 - $90,000, 2013 - $90,000, 2014 - $90,000, 2015 - $90,000 and 2016 - $75,000.