Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

Commitments and Contingencies
12 Months Ended
Dec. 31, 2014
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 0.5%, 3.75% at December 31, 2014, and is secured by all assets of the Company and personally guaranteed by the Company’s principal shareholder. As of December 31, 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 consolidated balance sheet. On September 5, 2014 the Company entered into an agreement whereby the Company will pay all arrears interest over 7 months at $3,910 per month. In addition, the Company has agreed to make monthly interest payments at $1,553 per month with the principal balance of $350,000 payable on April 30, 2016. It is 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 consolidated balance sheet.


Operating Leases


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


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 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 1st 2017. This lease commenced on February 1, 2014 and continues through January 31, 2019.


Minimum obligations under these lease agreements are as follows:


For the Year Ending December 31,      
2015    $ 67,596  
2016     27,888  
2017     29,384  
2018     29,520  
Thereafter     2,460  
    $ 156,848  


Rent expense for the year ended December 31, 2014 and 2013 was $121,886 and $151,693 respectively.


Other Leases


The Company currently leases 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 January 31, 2019.