Property and Equipment

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

4. Property and Equipment

Major classes of property and equipment consisted of the following:

	SEPTEMBER 30,			DECEMBER 31,
	2012			2011
Land and building	$	677,054		$	677,054
Computer hardware and software		1,534,720			1,419,711
Furniture and fixtures		209,182			202,591
Leasehold improvements		368,596			220,760
Automobile		2,400			-
Gross property and equipment		2,791,952			2,520,116
Less: accumulated depreciation and
amortization		(1,283,057	)		(1,183,982	)
Property and equipment, net	$	1,508,895		$	1,336,134

For the three months ended September 30, 2012 and 2011 property and equipment depreciation expense recorded was approximately $104,170 and $89,310, respectively. For the nine months ended September 30, 2012 and 2011 property and equipment depreciation expense recorded was approximately $305,250 and $257,050, respectively. For the nine months ended September 30, 2012 and 2011, there were no material sales or disposals of owned property and equipment.

Included in property and equipment are certain equipment purchases acquired under capital lease arrangements. For the three months ended September 30, 2012, the Company did not enter into any capital lease arrangements. For the nine months ended September 30, 2012, the Company entered into capital lease arrangements for computer server replacements with a present value of approximately $178,600. See Note 6 for additional information about capital lease obligations. For the nine months ended September 30, 2011, the Company did not enter into any capital lease arrangements.

For the three months ended September 30, 2012 and 2011 depreciation expense for leased equipment was approximately $17,500 and $11,300, respectively. For the nine months ended September 30, 2012 and 2011 depreciation expense for leased equipment was approximately $52,800 and $33,900, respectively.

Total capitalized cost of equipment under capital leases at September 30, 2012 and December 31, 2011 was approximately $479,900 and $432,000, respectively. Accumulated depreciation for leased equipment at September 30, 2012 and December 31, 2011 was approximately $336,300 and $414,200, respectively. For the three and nine month period ended September 30, 2012, equipment under capital leases with cost and accumulated depreciation of approximately $130,700 were disposed of at the end of the lease period, with was no gain or loss recognized upon disposition. Total net book value of assets under capital leases at September 30, 2012 and December 31, 2011 was approximately $143,600 and $17,800, respectively.