9. Capital Lease Obligations Payable

9 Months Ended

Sep. 30, 2012

Leases, Capital [Abstract]

Capital Lease Obligations Payable

The Company leases certain equipment under agreements that are classified as capital leases as follows:

Lease #1 - Commenced on March 12, 2010 with monthly lease payments of $2,238 and two months paid in advance, and the remaining payments paid over the next 43 months.

Lease #2 – Commenced on March 16, 2010 with monthly lease payments of $2,221 over the following 36 months.

Lease #3 – Commenced on January 12, 2012 with monthly lease payments of $480 over the next 48 months, and a bargain purchase price of $1 at the end of the lease.

The cost of equipment under capital leases is included in the Balance Sheets as property and equipment and was $134,800 and $116,945 at September 30, 2012 and December 31, 2011, respectively. Accumulated amortization of the leased equipment at September 30, 2012 and December 31, 2011 was $99,888 and $75,284, respectively. Amortization of assets under capital leases is included in depreciation and amortization expense.

The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of September 30, 2012, are as follows:

Twelve Months
Ending
September 30,	Amount
2013	$	46,557
2014		20,487
2015		5,757
2016		1,872
Total minimum payments	$	74,673
Less: amount representing interest		(20,729	)
Present value of net minimum lease payments		53,944
Less: Current maturities of capital lease obligations		(30,283	)
Long-term capital lease obligations	$	23,661