NOTE 17. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Operating Leases

In the normal course of business, the Company leases office and factory space under operating lease agreements. The operating lease agreements generally contain renewal options that may be exercised at the Company’s discretion after the completion of the base rental terms. In addition, many of the lease agreements provide for regular increases to the base lease rate at specified intervals, which usually occur on an annual basis. The Company was obligated under operating leases requiring minimum payments as of December 31, 2011 in future years as follows:

Year
	2012	$	771,839
	2013		370,539
	2014		11,427
	2015		1,904
	Total	$	1,155,709

Rental expenses were $974,166 and $959,582 for the years ended December 31, 2011 and 2010, respectively.

Two of the Company’s leases are expiring on August 31, 2013 and February 28, 2015.

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

+ References+ Details

Home System Group 10-K