Quarterly report pursuant to sections 13 or 15(d)

COMMITMENTS AND CONTINGENCIES

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COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2013
COMMITMENTS AND CONTINGENCIES [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 12 - COMMITMENTS AND CONTINGENCIES


Operating lease


On April 25, 2011, the Company entered into a 3 year escalating lease agreement for 1,352 square feet commencing July, 2011. The monthly rental rate is $1,800, $1,920 and $2,040 for the lease years ending July 31, 2012, 2013 and 2014, respectively. The Company incurred $1,664 in leasehold improvements prior to occupancy and paid a security deposit of $1,690.


On September 19, 2011, the Company entered into a 1 year sublease for 2,000 square feet in Las Vegas, Nevada. The sublease commenced on October 15, 2011 and requires monthly payments of $3,000. A security deposit of $3,000 was paid to the landlord.


Rent expense for the periods ending March 31, 2013 and March 31, 2012 were $5,732 and $15,214, respectively.


         

Five Year Minimum Lease Payment Schedule

 

Year

 

 

 

2013

 

$

23,040

 

2014

 

 

24,480

 

2015

 

 

-

 

2016

 

 

-

 

2017

 

 

-

 

Total

 

$

47,520