Operating Leases Effective as of July 1, 2008, the Company entered into a seven-year lease for 5,300 square feet of space in Plainview, New York. The facility is to serve as the Company?s executive offices, sales office, showroom and an assembly area. In March 2012 management exercised a Good Guy Clause? in its lease and abandoned the space at 25 Fairchild Avenue. Accordingly the Company recorded a charge of $34,707 for the loss on abandonment of property. The Company continues to accrue rent and rent related expenses per the Lease agreement. The Company is a defendant in a suit in the Supreme Court of the State of New York, County of Nassau, filed by Fairchild Warehouse Associates, LLC, as plaintiff, for recovery of past rental payments for the Company?s former office space at 25 Fairchild Avenue, Plainview, N.Y. 11803, with money damages requested in the amount of $ 141,721. On May 24, 2010, effective July 1, 2010, the Company entered into a two-year lease in Plainview, New York. The facility is to serve as the Company?s production facilities, as well as its? headquarters. Under the terms of the lease the Company paid a deposit of approximate $12,000. The minimum monthly lease payments due under this lease are approximately $6,000 for the period July 1, 2010 through June 30, 2011 and approximately $10,700 for the period July 1, 2011 through June 30, 2012. On June 28, 2012, the Company signed a lease renewal agreement to extend our lease at 160 Dupont Street for another three years. The minimum annual lease payments due under this lease are as follows: Year ending Amount 2013 $ 134,160 2014 138,184 2015 70,114 $ 342,458 Rent and rent related expenses, excluding repair and maintenance, during the years ended December 31, 2012 and 2011 was approximately $263,116 and $267,971 which includes repair and maintenance expenses of $8,426 and $11,062, respectively. Litigation The Company is a defendant in a suit in the Supreme Court of the State of New York, County of Nassau, filed by Fairchild Warehouse Associates, LLC,