CAPITAL LEASE PAYABLE

6 Months Ended

Jun. 30, 2013

6.	CAPITAL LEASE PAYABLE

In February 2011, the Company entered into a capital lease agreement under which the Company leased certain laboratory equipment. Capital lease obligation consisted of the following:


	June 30, 2013			December 31, 2012

Capital lease payable	$	19,326		$	35,405
Less:current portion		(19,326	)		(32,606	)


Capital lease payable, net of current portion	$	—		$	2,799

The total value of the laboratory equipment acquired under this capital lease agreement was $124,151 including a down payment of approximately $31,000. The capital lease is payable in monthly installments of $2,812 payable over thirty six months with the final payment due in January 2014. For the three and six months ended June 30, 2013, interest expense recorded on the capital lease was $340 and $790, respectively. For the three and six months ended June 30, 2013 depreciation expense was $6,208 and $12,416, respectively. For the three and six months ended June 30, 2012, interest expense recorded on the capital lease was $1,353 and $2,545, respectively. For the three and six months ended June 30, 2012, depreciation expense was $6,208 and $12,416, respectively. The net book value at June 30, 2013 was $64,145.