NOTE I   COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases its laboratory and office facilities under non-cancelable operating leases. These operating leases expire at various dates through April 2016 and generally require the payment of real estate taxes, insurance, maintenance and operating costs. The Company has approximately 33,000 square feet of office and laboratory space at our corporate headquarters in Fort Myers, Florida. In addition, we maintain laboratory and office space in Irvine, California, Nashville, Tennessee and Tampa, Florida. The minimum aggregate future obligations under non-cancelable operating leases as of December 31, 2012 are as follows: Years ending December 31, 2013 $ 670,651 2014 552,281 2015 209,164 2016 70,664 Total minimum lease payments $ 1,502,760 Rent expense for the years ended December 31, 2012 and 2011 was approximately $1,123,000 and $797,000, respectively and is included in costs of revenues and in general and administrative expenses, depending on the allocation of work space in each facility. Certain of the Company s facility leases include rent escalation clauses. The Company normalizes rent expense on a straight-line basis over the term of the lease for known changes in lease payments over the life of the lease. Capital Lease Obligations The Company s capital lease obligations expire at various times through 2017 and the weighted average interest rates under such leases approximated 10.1% at December 31, 2012. Some of our leases contain bargain purchase options that allow us to purchase the leased property for a minimal amount upon the expiration of the lease term. The remaining leases have purchase options at fair market value. Future minimum lease payments under capital lease obligations, including those described above are: Years ending December 31, 2013 $ 2,692,284 2014 2,034,862 2015 629,624 2016 440,403 2017 147,650 Total future minimum lease payments 5,944,823 Less amount representing interest (635,946 ) Present value of future minimum lease payment