Capital Lease Obligations Payable

6 Months Ended

Jun. 30, 2012

Capital Lease Obligations Payable [Abstract]

Note 9 - 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 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 June 30, 2012 and December 31, 2011, respectively. Accumulated amortization of the leased equipment at June 30, 2012 and December 31, 2011 was $91,687 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 June 30, 2012, are as follows:

Twelve Months
Ending
June 30,	Amount

2013		46,564
2013		62,172
2014		42,500
2015		5,500
2016		5,500
Total minimum payments	$	162,236
Less: amount representing interest		(100,057	)
Present value of net minimum lease payments		62,179
Less: Current maturities of capital lease obligations		(32,767	)
Long-term capital lease obligations	$	29,412