Quarterly report pursuant to Section 13 or 15(d)

Capital Leases

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Capital Leases
9 Months Ended
Sep. 30, 2016
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 our capital lease obligation as of September 30 and December 31:

 

    2016     2015  
Capital lease to purchase equipment   $ 109,614     $ 128,060  
Less current portion of capital lease obligations:     (28,523 )     (25,131 )
Long-term capital lease obligations, net of current portion   $ 81,091     $ 102,929  

 

Future minimum lease payments under the lease as of September 30, 2016 are as follows:

 

Period Ending September 30:      
2016 (Remaining)     6,685  
2017     29,753  
2018     35,224  
2019     37,952  
Total capital lease obligation   $ 109,614  

 

The following is a summary of leased assets included in machinery and equipment as of September 30 and December 31:

 

    2016     2015  
Leased Equipment   $ 179,620     $ 179,620  
Less accumulated depreciation     (62,867 )     (35,924 )
Net leased assets   $ 116,753     $ 143,696