Note 9 - Capital Leases - Future Minimum Lease Payments

The Company leases certain machineries under agreements that are classified as capital leases. The cost of equipment under capital leases is included in the property and equipment and was $324,390 and $-0- as of September 30, 2011 and December 31, 2010, respectively. Accumulated amortization of the leased machinery as of September 30, 2011 and 2010 was $10,468 and $-0-, respectively. Amortization of assets under capital leases is included in depreciation expense.

The future minimum lease payments required under the capital leases and the present values of the net minimum lease payments as of September 30, 2011 are as follows:


Year Ending December 31,	Amount
2011	$	73,134
2012		127,114
2013		127,114
Total minimum lease payments	$	327,362
Less: Current maturities of capital
lease obligations		(124,786	)
Long-term capital lease obligations	$	202,576