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OPERATING LEASES
6 Months Ended
Mar. 31, 2012
Leases  
Operating Leases of Lessee Disclosure [Table Text Block]
NOTE 7 - OPERATING LEASES

 

The Company leases two pieces of property to use as storage lots. One is leased under a seven-year agreement beginning March 1, 2006, for $4,802 based on the Consumer Price Index. The lease is scheduled to expire February 28, 2013.

 

The second lot is located in Oceano, California and is leased at $2,933 per month. The lease has converted to a month-to-month lease; however, the lessor is considering a long-term renewal at this time.

 

The Company has a five-year lease obligation for a copier. Rental expense under this operating lease is $414 per month.

 

Future minimum lease payments under the second lease and an obligation to lease equipment are as follows:

 

For the Year Ended March 31,

2013

$ 57,787

2014

4,965

2015

4,965

2016

4,965

2017

4,965

Thereafter

         -    

$ 77,647

 

Rent expense under these agreements was $46,409 and $46,409 for the six-months ended March 31, 2012 and 2011, respectively.