Notes Payable - Capital Lease

6 Months Ended

Jun. 30, 2013

14.

Notes Payable – Capital Lease

The Company has entered into a capital lease for equipment at an interest rates of 7.25%, payable through 2018. The assets and liabilities under the capital leases are recorded at the present value of the minimum lease payments and are depreciated over their estimated useful lives. The gross amount of assets held under capital leases for the six months June 30, 2013 and December 31, 2012 was $16,300 and $0, respectively, with accumulated depreciation of $390 and $0, respectively. Depreciation expense for this equipment for the six months ended June 30, 2013 and December 31, 2012 was $390 and $0, respectively.

Future minimum lease payments and the present value of the payments are as follows:

Debt maturities as of	June 30,
2014	$	4,000
2015		4,000
2016		4,000
2017		4,000
2018		3,000
		19,000
Less: amounts representing interest		(3,000)
Present value		16,000
Less: current portion		(2,000)
Note payable Capital Lease – noncurrent portion	$	14,000