Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies
6 Months Ended
Jun. 30, 2014
Commitments and Contingencies [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 June 30, 2014, and is secured by all assets of the Company and personally guaranteed by the Company’s principal shareholder. As of June 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.


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 current contract expires June 30, 2014.


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.


Minimum obligations under these lease agreements are as follows:


For the twelve months ending June 30,      
2015   $ 27,888  
2016     27,888  
2017     28,694  
2018     29,520  
Thereafter     2,460  
    $ 116,450  


Rent expense for the six months ended June 30, 2014 and June 30, 2013 was $57,463 and $73,071 respectively.