Note 4. Capital Lease, in Default	9 Months Ended
Sep. 30, 2016
Notes
Note 4. Capital Lease, in Default	Note 4. Capital Lease, in default In June 1 2014, Mulberry Processing, LLC, a wholly owned subsidiary of the Company, entered into a contract to lease certain real property and buildings in Bradley, Florida from Bowling Green Holdings, LLC (“BGH”), a company owned by David Kasmoch, the father of Timothy R. Kasmoch, the Company’s President and Chief Executive Officer. The lease term is for five years beginning June 1, 2014 and a monthly payment of $10,000. This lease has been determined to be a capital lease and a liability and related asset of $420,346 was recorded in June 2014 concurrent with the start of the lease agreement. Depreciation on assets under capital leases charged to expense for both the nine and three months ended September 30, 2016 and 2015 was $63,052 and $21,017, respectively, recorded as cost of sales. Interest charged related to capital lease liabilities for the nine months ended September 30, 2016 and 2015 was $33,134 and $41,010, respectively, and for the three months ended September 30, 2016 and 2015 was $10,334 and $13,058, respectively, recorded as interest expense. At both September 30, 2016 and December 31, 2015, the Company was delinquent in its payments and in default of its lease agreement however there is no acceleration provision in the lease agreement. The total lease liability at both September 30, 2016 and December 31, 2015 was $375,436.

Note 4. Capital Lease, in Default

9 Months Ended

Sep. 30, 2016

Note 4. Capital Lease, in default

In June 1 2014, Mulberry Processing, LLC, a wholly owned subsidiary of the Company, entered into a contract to lease certain real property and buildings in Bradley, Florida from Bowling Green Holdings, LLC (“BGH”), a company owned by David Kasmoch, the father of Timothy R. Kasmoch, the Company’s President and Chief Executive Officer. The lease term is for five years beginning June 1, 2014 and a monthly payment of $10,000. This lease has been determined to be a capital lease and a liability and related asset of $420,346 was recorded in June 2014 concurrent with the start of the lease agreement.

Depreciation on assets under capital leases charged to expense for both the nine and three months ended September 30, 2016 and 2015 was $63,052 and $21,017, respectively, recorded as cost of sales. Interest charged related to capital lease liabilities for the nine months ended September 30, 2016 and 2015 was $33,134 and $41,010, respectively, and for the three months ended September 30, 2016 and 2015 was $10,334 and $13,058, respectively, recorded as interest expense. At both September 30, 2016 and December 31, 2015, the Company was delinquent in its payments and in default of its lease agreement however there is no acceleration provision in the lease agreement. The total lease liability at both September 30, 2016 and December 31, 2015 was $375,436.