Note 9: Commitments and Contingencies Operating Lease Obligation We lease our offices from a party that is related to our CEO. The initial term of the lease expired August 31, 2010 and there was an option for two six-year renewals. Under the terms of the lease agreement the monthly minimum rental payment was $18,565 and rent increased 3% every year on September 1st. Effective April 1, 2010, the landlord agreed to temporarily reduce the monthly rent to $9,283 until the end of the initial lease period. On September 1, 2010, a new lease was entered into for a period of two years with a monthly rental payment of $10,359. Rent expense was $93,240 and $111,395 for the nine months ended September 30, 2011 and 2010, respectively. Rent to be paid under the lease agreement is summarized as follows: Twelve months ended September 30, 2012 $ 113,949 Total Lease Obligation $ 113,949 Legal Proceedings In the ordinary course of conducting our business, we are, from time to time, involved in various legal proceedings, administrative proceedings, regulatory government investigations and other matters, including those in which we are a plaintiff, that are complex in nature and have outcomes that are difficult to predict. In accordance with SFAS 5, ? Accounting for Contingencies, ? we record accruals for such contingencies to the extent that we conclude that it is probable that a liability will be incurred and the amount of the related loss can be reasonably estimated. Our assessment of each matter may change based on future unexpected events. An unexpected adverse judgment in any pending litigation could cause a material impact on our business operations, intellectual property, results of operations or financial position. Unless otherwise expressly stated, we believe costs associated with litigation will not have a material impact on our financial position or liquidity, but may be material to the results of operations in any given period. We assume no obligation to update the status of pending litigation, except as may be required