NOTE 6 - COMMITMENTS AND CONTINGENCIES The Company has a non-cancelable operating lease for its facilities. The lease agreement requires a monthly payment ranging from approximately $2,844 to $3,201 and expires on September 30, 2013. As of November 30, 2004, the Company was in default of the lease agreement. The lessor temporarily reduced the monthly payment for the months November 2004 through November 2005 to $2,000 and agreed to defer the remainder of the monthly payments totaling $7,870 that would have been due during this period of time. The Company exercised its option to renew the lease for an additional 5-year period on September 12, 2008, at which time the deferred payments were forgiven in full by the lessor. The Company has elected to amortize the forgiveness of rent, which had been included in accounts payable and accrued expenses, straight-line over the 5-year lease period as a reduction in monthly rent expense. Amortization expense was $1,574 for each of the years ended December 31, 2012 and 2011, respectively, resulting in unamortized forgiveness of rent balance of $1,049 and $2,623 at December 31, 2012 and 2011, respectively. The Company has the option to renew the lease for one additional 5-year term at monthly payments beginning at $3,297 and adjusted annually for inflation. The Company is responsible for all expenses connected with the building including improvements, utilities, taxes, and repairs. Total rent expense (including common area maintenance fees of $8,467 and $6,708, respectively, included in general and administrative expenses) for the years ended December 31, 2012 and 2011 was $44,345 and $41,337, respectively. Future minimum lease payments for the operation lease for the facility are as follows: Year Ending December 31, Amount 2013 $28,806 $28,806