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OPERATING LEASES
3 Months Ended
Dec. 31, 2012
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.


At December 31, 2012, future minimum lease payments under these leases were as follows:


For the Year Ended December 31,

 

2013

$ 14,569

2014

4,965

2015

4,965

2016

4,965

2017

1,240

Thereafter

-

Total

$ 30,704


Rent expense under these agreements was $23,319 and $23,205 for the three-month period ended December 31, 2012 and 2011, respectively.