On November 9, 2011 the Company?s wholly-owned subsidiary Xhibit entered into a lease agreement for corporate office space in Tempe, Arizona. Under the terms of the agreement, Xhibit made a payment of $250,000 in 2011 for prepaid rent to be applied to the first nine months? rent beginning with the commencement date of June 1, 2012. The original lease term ends in December 2018, and the lease has an option to extend for an additional five years. Furthermore, the lease terms state that the Company was granted a $790,550 tenant improvement allowance. This allowance was used for the leasehold improvements during the current quarter, which are still under construction and are therefore recorded as ?Construction in progress? within the Property and Equipment line item on the accompanying Balance Sheet. In accordance with ASC 840-20-25, the Company has recorded the tenant improvement allowance as a deferred lease incentive, and will amortize these costs, beginning August 1, 2012, over the remaining term of the lease agreement. Future minimum lease payments as of June 30, 2012 for the next five years and thereafter are as follows: Year ending December 31, Amount 2012 $ ? 2013 268,309 2014 355,418 2015 382,099 2016 413,721 Thereafter 922,308 Total $ 2,341,855 The Company has entered into an agreement with an electrical contractor to provide electrical, data, and communication lines, as well as equipment and installation services for a total cost of $228,000. As of June 30, 2012 the Company has paid a total of $189,403 for the services; this amount has been recorded as part of the ?Construction in progress? account within the Property and Equipment line item on the accompanying Balance Sheet. The Company has a remaining commitment under this agreement to pay the contractor $38,597 for work not yet completed as of June 30, 2012.