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Commitments and Contingencies
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9 Months Ended | ||||||||||||||||||||||||||||||||||||
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Sep. 30, 2014
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies |
Note 7 - Commitments and Contingencies Revolving Credit Facility On January 31, 2008 the Company entered into a revolving credit line with a bank. The credit facility provides for $100,000 at prime plus .5%, 3.75% at September 30, 2014, and is secured by all assets of the Company and personally guaranteed by the Company’s principal shareholder. As of September 30, 2014, the Company owed $100,292 under this agreement. Contingent Collateral Obligation In connection with the 2012 acquisition of Message Logic, LLC, the Company acquired software subject to a UCC filing in the amount of $350,000 plus accrued interest. The Company believes that it will pay this lien regardless of whether they are required to pay any of the contingent purchase price and accordingly the liability has been recorded on the Company’s balance sheet. On September 5, 2014, the Company entered into an agreement whereby the Company will make payments of all arrears of interest over 7 months at $3,910 per month. In addition, the Company has agreed to make monthly interest payments of $1,553 per month with the principal balance of $350,000 payable on April 30, 2016. Upon signing of this agreement the contingent collateral obligation became classified as a note payable as opposed to its original contingent collateral obligation on the condensed balance sheet. Operating Leases The Company currently leases office space in Garden City, NY, and Warwick, RI and data centers in Westbury, NY and Waltham, MA. The Company leases a data center in Westbury, NY on a month to month basis. Monthly rent is $1,500, plus utilities and the lease is with the Chairman of the Company. The Company leases space in a data center in Waltham, MA. The lease calls for monthly payments under an annually renewable contract for space and services. The payments are approximately $29,000 per month depending upon services used and the original contract terms were renewed to September 30, 2015. The lease for office space in Garden City, NY calls for escalating monthly payments ranging from $6,056 to $6,617 plus a portion of the operating expenses through June 2014. This lease was renewed for an additional year through June 30, 2015 at the rate of $6,617 per month. The Company leases space in a data center in Warwick, RI. This lease commenced on February 1, 2014 and continues through January 31, 2019. Minimum obligations under these lease agreements are as follows:
Rent expense for the nine months ended September 30, 2014 and September 30, 2013 was $91,641 and $113,732 respectively. Rent expense for the three months ended September 30, 2014 and September 30, 2013 was $34,177 and $40,661 respectively. |
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