Note 19 - Commitments and Contingencies Lease Commitments The Company leases equipment under a non-cancelable lease arrangement at an interest rate of 17.6% per annum. The Company also leases its primary office facility from a Related Party under a non-cancelable operating lease that expired on February 28, 2011. Upon the expiration of the original term, the lease term was modified to provide for the facility rental on a month-to-month basis. Rent expense totaled $16,200 and $15,900 for the nine months ended September 30, 2012 and 2011, respectively. Rent expense totaled $5,400 and $6,300 in the three months ended September 30, 2012 and 2011, respectively. The future minimum payments for the capital lease as of September 30, 2012 are as follows: Twelve months ending September 30, 2013 $ 12,720 2014 2,123 Total future minimum lease payments 14,843 Amount representing interest (1,509 ) Present value of future minimum lease payments 13,334 Less: current portion 11,257 Lease obligations, net of current portion $ 2,077 Placement Agent Agreement In June 2011 the Company entered into an Investment Banking Agreement with its Placement Agent, pursuant to which the Company was obligated to pay the Placement Agent a monthly retainer of $5,000. This agreement was cancelled by the Company in August 2012 upon completion of the Offering. But for two years following the cancellation of the agreement the Company will still be obligated to pay fees for any leads introduced by the Placement Agent for financing, investors, or acquisitions. For arranging financing for the Company, the Placement Agent received 10% of the gross proceeds raised in the Offering, 10% warrant coverage with an exercise price equal to the effective price of the equity securities sold or, in the case of publicly traded equity securities, the closing stock bid on the date the transaction closes and common equities resulting in a total ownership percentage of the Company s then outstanding equity equal to 9.9%. Sales Agreement In August 2012 the Company entered