NOTE 13. COMMITMENTS AND CONTINGENCIES Operating Leases On July 23, 2014, the Company entered into an agreement with its landlord to extend the facilities lease by five years. The previous ten year lease was to expire on December 31, 2015. The agreement amends the lease to expire on December 31, 2020. The lease amendment is effective August 1, 2014 and includes a four month rental abatement in the amount of $117,660. In exchange for the rental abatement, the Company has agreed to make improvements to the facility totaling $123,505 within six months of August 1, 2014. In addition, the monthly rent on the facility decreases from the current rent of $33,139 to $29,415 per month, beginning on December 1, 2014. Beginning January 1, 2015, the monthly rent is on an escalating schedule with the final year of the lease at $35,123 per month. The liability for this difference in the monthly payments is accounted for as a deferred rent liability, and the balance in this account at March 31, 2015 was $234,070 and $144,040 at March 31, 2014. The rent expense under this lease for the nine months ended March 31, 2015 and 2014 was $261,963 and $242,792, respectively. The Company also leases certain postage equipment under an operating lease. The monthly lease is $104 per month and expires January 2017. The Company entered into an operating lease for certain material handling equipment in September 2010. The monthly lease amount is $1,587 per month and expires in September 2015. Future minimum lease payments under non-cancelable operating leases at March 31, 2015 are as follows: Year ending June 30, 2015 (three months) $ 95,965 2016 373,442 2017 381,131 2018 391,496 2019 403,241 Thereafter through 2021 626,077 Total minimum lease payments $ 2,271,352 Capital Leases The Company has acquired equipment under the provisions of long-term leases. For financial reporting purposes, minimum lease payments relating to the equipment have been capitalized. The leased properties under these capital leases have a total cost of $286,557. These a