Commitment and Contingencies

6 Months Ended

Jun. 30, 2011

Commitment and Contingencies [Abstract]

COMMITMENT AND CONTINGENCIES

NOTE 11. COMMITMENTS AND CONTINGENCIES

In July 2011, the Company and its landlord for the Solon, Ohio office, located at 32000 Aurora Road, signed an amended and restated sublease agreement that will resolve past due amounts under the lease agreement, which expired April 30, 2011, as well as the terms by which the Company and its landlord will enter into an extension of the previous lease. The terms includes a reduction of the gross rent to $25,000 for the period September 1, 2010 to April 30, 2011 (the “period”), an extension of the lease until April 30, 2014 with a Company option to extend thereafter and a reduction in both the square footage of the premises and the gross rent per square foot to be paid from May 1, 2011 to April 30, 2014. In conjunction with the signing of the lease agreement and to satisfy past due amounts, the Company delivered an unsecured Promissory Note to the landlord. For details relating to this promissory note, please see Note 7, Long Term Borrowings.

In connection with the acquisition of SRC, the Company maintains a performance-related contingent obligation related to a 2.5% payout based upon the annual revenues of the acquired business over 42 months commencing January 1, 2010, and a $500,000 fee if the market price of the Company’s common stock is not equal to or greater than $2.00 per share for at least twenty trading days between June 30, 2010 and June 30, 2013. The Company accrued for this potential fee at the time of the agreement. For the three and six months ended June 30, 2011, the Company has paid $60,000 and $170,000, respectively, relating to this 2.5% payout. For the three and six months ended June 30, 2010, the Company has paid $131,000 and $257,000, respectively.