6. Leases

On August 1, 2015, we entered into a master lease agreement with Agricredit-Acceptance, LLC for vehicles by Club Car, LLC. The agreement provides for two leases, golf carts and utility vehicles, with payments commencing in December 2015. The term of each lease is 48 months and the monthly lease payments are approximately $21,200 and $11,100, respectively. Lease expense amounted to approximately $387,600 for the years ended December 31, 2018 and 2017.

Future minimum lease payments under operating leases are as follows:


	2019

Agri Credit - golf & utility carts	$	219,445

During the fourth quarter of 2014, the Company entered into a master lease agreement with PNC Equipment Finance, LLC for the lease of golf course equipment. The Company is obligated under five capital leases that were recorded in the first quarter of 2015 when all of the equipment was received. The term of each lease is 60 months, with interest rates ranging from 2% to 4.45%, and the monthly lease payments vary in amount. The leases contain bargain purchase options that allow us to purchase the leased equipment for a minimal amount upon the expiration of the lease term. Equipment acquired under capital leases is pledged as collateral to secure the performance of the future minimum lease payments. Future minimum lease payments under capital lease obligations are as follows:


Years ending December 31,
2019	$	459,331
2020		116,145

Total future minimum lease payments		575,476

Less amount representing interest and taxes		(41,988)

Present value of future minimum lease payments		533,488

Less current maturities		(426,331)

Obligations under capital leases - long term	$	107,157