Properties

We lease a 16,000 square foot office building in Seattle, Washington at a cost of $15,000 per month. Our lease for this facility expires on November 30, 2018. We have an option to renew the lease for a period of nine and one-half years. We also lease 8,600-square-foot office in New York, New York at a current cost of $17,761 per month. This lease expires on June 30, 2011. In addition, we own miscellaneous office furniture and equipment, including computers and video displays used in our operations. We believe our current facilities are adequate for our existing operations and that all of our properties are adequately covered by insurance. We have granted a security interest in all of our assets, tangible and intangible, to Laurus Master Fund, Ltd., as security for our payment of amounts due under our existing revolving line of credit.