NOTE 11   COMMITMENTS AND CONTINGENCIES Leases The Company entered into several operating lease agreements for facilities and equipment. Terms of certain lease arrangements include renewal options, escalation clauses, payment of executory costs such as real estate taxes, insurance and common area maintenance. In November 2006, the Company amended its facility lease to include additional space through 2010. The amendment for the additional space contains terms similar to the terms of the existing facility lease, including escalation clauses (unaudited). In November 2009, the Company amended its facility lease to eliminate excess space. The amendment contains terms similar to the terms of the existing facility lease, including escalation clauses (unaudited). In February 2010, the Company amended its facility lease to extend the term of the lease until January 2013. In August 2011, the Company amended its facility lease to eliminate excess space. The amendment contains terms similar to the terms of the existing facility lease, including escalation clauses. Approximate annual future minimum lease obligations under non cancelable operating lease agreements as of December 31, 2011 are as follows: Year ending December 31, 2012 $ 66,906 2013 5,589 Total $ 72,495 Rent expense was $126,829 and $139,160 for the years ended December 31, 2011 and 2010, respectively and $1,889,339 for the cumulative period from August 12, 1999 (date of inception) to December 31, 2011. During 2005, the Company was provided with a tenant improvement allowance of $60,150 towards its improvements. The Company has recorded the tenant-funded improvements and the related deferred rent in its consolidated balance sheets. The deferred rent is being amortized as a reduction to rent expense over the remaining life of the original lease (unaudited). Royalty Payments The Company is obligated to pay royalties on commercial sales of certain products that may be developed and sold under various licenses and agreements that have been obtained by the Company. T