13. Capital Lease Obligations Payable

9 Months Ended

Sep. 30, 2015

Leases, Capital [Abstract]

Capital Lease Obligations Payable

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

The cost of equipment under capital leases is included in the Balance Sheets as property and equipment and was $17,855 and $17,855 at September 30, 2015 and December 31, 2014, respectively. Accumulated amortization of the leased equipment was $13,394 and $10,713 at September 30, 2015 and December 31, 2014, 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, 2015 and December 31, 2014, are as follows:

	September 30,			December 31,
	2015			2014
Lease #1 – Capital Lease from Marlin Bank Lease 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 outstanding balance on the Capital Lease bears interest at a rate of 13%.		1,921			6,656
Total minimum payments	$	1,921		$	6,656
Less: amount representing interest		(105	)		(766	)
Present value of net minimum lease payments		1,816			5,890
Less: Current maturities of capital lease obligations		(1,816	)		(5,890	)
Long-term capital lease obligations	$	–		$	–