Capital Lease- Related Party

6 Months Ended

Jun. 30, 2012

7.	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. See Note 11, Related Party Transactions, of the accompanying consolidated financial statements for information on the related party transaction. Under the original terms of the agreements, monthly payments of $7,500, which include an imputed fixed interest rate of 2.00%, commenced November 3, 2009 and continues through the fourth quarter of 2016. At June 30, 2012, the present value of the minimum lease payments is approximately $373,000 (after subtracting approximately $17,000 of imputed interest). See Note 14, Subsequent Events for cancellation of lease agreement during July 2012.