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 0.5%, or 3.75% at June 30, 2015, and is secured by all assets of the Company and personally guaranteed by the Company’s principal shareholder. As of June 30, 2015, the Company owed $100,292 under this agreement.

Operating Leases

The Company currently leases office space in Garden City, NY, and Warwick, RI.

The lease for office space in Garden City, NY called 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 in 2014 to extend through June 30, 2015 at the rate of $6,617 per month. This lease was renewed again in 2015 for another additional year through June 30, 2016 at a rate of $6,773 per month. The lease for office space in Warwick, RI calls for monthly payments of $2,324 beginning February 1, 2014 which escalates to $2,460 on February 1^st 2017. 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 six months ended June 30, 2015 and June 30, 2014 was $65,230 and $57,463 respectively.

Other Leases

The Company currently leases data centers in Westbury, NY and Waltham, MA. 

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 current contract expires January 31, 2019.