Capitalized Lease Obligations

3 Months Ended

Feb. 28, 2019

Leases [Abstract]

CAPITALIZED LEASE OBLIGATIONS

NOTE D – CAPITALIZED LEASE OBLIGATIONS

The Company is obligated under capitalized leases for telephone equipment. The Company leases equipment under two capital lease arrangements with NEC Financial Services. Pursuant to the leases, the lessor retains actual title to the leased property until the termination of the lease, at which time the equipment can be purchased for one dollar for each lease. The terms of the leases are 60 months with a combined monthly payment of $815, respectively. The assumed interest rates on the leases are 9.342% per annum. The leases terminate in 2022.

Future minimum lease payments under these capitalized lease obligations as of February 28, 2019 are as follows:

2020	$	9,779
2021	$	9,779
2022	$	9,779
2023	$	7,337
Total	$	36,674
Less: interest portion		7,449
Present value of net minimum lease payments	$	29,225
Less: current portion		7,258
Non-current portion	$	16,484

Capital lease obligations mature as follows:
Twelve months ending February 28:
2019	$	7,258
2020	$	7,965
2021	$	8,742
2022	$	5,260
Principal payments remaining	$	29,225