Lease Obligations

12 Months Ended

Dec. 31, 2018

Leases of Lessee Disclosure [Text Block]

Note 5.

Lease Obligations

Operating

The Company leases its facilities and certain office equipment under agreements classified as operating leases expiring at various dates through 2024. Rent expense, which includes various monthly rentals for the years ended December 31, 2018 and 2017, totaled $176,142 and $194,209, respectively. Future minimum lease payments at December 31, 2018, are as follows:

2019	$	107,512
2020		108,123
2021		110,370
2022		112,617
2023 and beyond		217,089
Total minimum lease payments	$	655,711

Capital

The Company also leases certain equipment under capital leases. Future minimum lease payments, by year, with the present value of such payments, as of December 31, 2018, are shown in the following table.

2019	$	124,987
2020		86,052
2021		69,641
2022 and beyond		-
Total minimum lease payments		280,680
Less amount representing interest		17,949
Present value of minimum lease payments		262,731
Less current portion		114,853
Capital lease obligations, net of current portion	$	147,878

The equipment under capital lease at December 31 is included in the accompanying balance sheets as follows:

	2018		2017
Machinery and equipment	$	725,036	$	706,050
Less accumulated depreciation and amortization		222,973		194,588
Net book value	$	502,063	$	511,462

These assets are amortized over a period of ten years using the straight-line method and amortization is included in depreciation expense.

The capital leases are structured such that ownership of the leased asset reverts to the Company at the end of the lease term. Accordingly, leased assets are depreciated using the Company's normal depreciation methods and lives. In 2018, ownership of certain assets were transferred to the Company in accordance with the terms of the leases and these assets have been excluded from the leased asset disclosure above.