Note 3 - Capital Lease Obligations

9 Months Ended

Sep. 30, 2016

Debt and Capital Leases Disclosures [Text Block]

3. CAPITAL LEASE OBLIGATIONS

We lease certain telecommunication equipment under a capital lease agreement. The assets subject to the agreement totaled $227,783, of which $177,043 and $22,152 are included in Property and Equipment at September 30, 2016 and December 31, 2015, respectively, and $50,176 and $205,631 is included in Prepaid Equipment (not placed in service) as of September 30, 2016 and December 31, 2015. Accumulated depreciation on the assets placed in service was $22,130 and $264 at September 30, 2016 and December 31, 2015, respectively. Amortization of the capitalized cost is charged to depreciation expense.

The amounts outstanding under capital lease obligations consisted of the following:

	September 30, 2016		December 31, 2015
Capital Lease secured by certain telecommunication equipment – total annual principal payments of $72,686, 1.8% interest, maturing January 2018	$	149,250	$	156,271
Less amount representing interest		3,877		4,189
Total obligation under capital lease		145,373		152,082
Less current maturities		72,686		72,686
	$	72,687	$	79,396