Capital Lease Obligations Payable

12 Months Ended

Dec. 31, 2011

Capital Lease Obligations Payable [Abstract]

Note 12 - Capital Lease Obligations Payable

The Company leases certain equipment under agreements that are classified as capital leases. One lease 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 46 months. The second lease calls for monthly lease payments of $2,221 for 36 months. The cost of equipment under capital leases is included in the Balance Sheets as property and equipment and was $116,945 and $116,945 at December 31, 2011 and 2010, respectively. Accumulated amortization of the leased equipment at December 31, 2011 and 2010 was $75,284 and $41,464, 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 December 31, 2011, are as follows:

Year Ending
December 31,	Amount

2012		56,412
2013		56,412
2014		14,103
Total minimum payments	$	126,925
Less: amount representing interest		(65,594	)
Present value of net minimum lease payments		61,331
Less: Current maturities of capital lease obligations		(47,515	)
Long-term capital lease obligations	$	13,816

The Company recorded interest expense in the amount of $10,168 and $12,925 for the years ended December 31, 2011 and 2010, respectively related to capital lease obligations.