Sale-leaseback transaction

6 Months Ended

Jun. 30, 2015

Sale-leaseback transaction

Sale-leaseback transaction

Note 7. Sale-leaseback transaction

In the aggregate, the Company sold groups of assets for $5.5 million and $795,000 in five separate tranches that occurred in February, July and November 2013, and March 2014, which resulted in a net gains of approximately $2.7 million and $116,000, in the years ended December 31, 2013 and 2014, respectively, and executed capital leases for these assets with repurchase options at the end of each respective lease term. Gains on the transactions are recognized on a straight-line basis over each respective 42-month lease term. For the three months ended June 30, 2015 and 2014, approximately $208,000 per period, and for the six months ended June 30, 2015 and 2014 approximately $416,000 and $408,000, respectively, of the net gain was recognized in other income on the consolidated statements of operations.