Quarterly report pursuant to Section 13 or 15(d)

Capital Leases

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Capital Leases
3 Months Ended
Mar. 31, 2017
Capital Leases [Abstract]  
Capital Leases

Note 7 – Capital Leases

 

During 2014, the Company purchased equipment under a capital lease obligation. The lease is payable in 60 monthly payments of $3,750, beginning December 20, 2014, maturing December 20, 2019. The capital lease is collateralized by the equipment purchased. The capital lease is personally guaranteed by the Chairman and CEO of the Company.

 

Following is a breakdown of the capital lease obligation as of March 31, 2017 and December 31, 2016:

 

    March 31,     December 31,  
    2017     2016  
Capital lease to purchase equipment   $ 92,305     $ 99,279  
Less current portion of capital lease obligations:     (31,035 )     (29,753 )
Long-term capital lease obligations, net of current portion   $ 61,270     $ 69,526  

 

Minimum future lease payments under the capital leases as of March 31, 2017 are as follows:

 

Period Ending December 31:      
2017 (Remaining)   $ 33,752  
2018     45,003  
2019     37,604  
Total minimum lease payments   $ 116,359  
Less amount representing interest expense     (24,045 )
Present value of minimum lease payments   $ 92,305  
Less current portion of minimum lease payments     (31,035 )
Long-term capital lease obligations at March 31, 2017   $ 61,270  

 

The following is a summary of leased assets included in machinery and equipment as of March 31, 2017 and December 31, 2016:

 

    March 31,     December 31,  
    2017     2016  
Leased Equipment   $ 179,620     $ 179,620  
Less accumulated depreciation     (80,829 )     (71,848 )
Net leased assets   $ 98,791     $ 107,772