Notes Payable - Capital Lease

9 Months Ended

Sep. 30, 2013

12.

Notes Payable – Capital Lease

The Company has entered into a capital leases for equipment at 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 nine months September 30, 2013 and December 31, 2012 was $16,300 and $0, respectively, with accumulated depreciation of $780 and $0, respectively. Depreciation expense for this equipment for the nine months ended September 30, 2013 and December 31, 2012 was $780 and $0, respectively.

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

Debt maturities as of	September 30,
2014	$	4,000
2015		4,000
2016		4,000
2017		4,000
2018 and thereafter		3,000
		19,000
Less: amounts representing interest		(3,000)
Present value		16,000
Less: current portion		(3,000)
Note payable Capital Lease – noncurrent portion	$	13,000