Quarterly report pursuant to Section 13 or 15(d)

Capital Lease Obligations

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Capital Lease Obligations
6 Months Ended
Jun. 30, 2013
Capital Lease Obligations [Abstract]  
Capital lease obligations
Note 6 – Capital lease obligations
 
The Company acquired capital leases in the acquisition of SafeData. The economic substance of the leases is that the Company is financing the acquisitions through the leases and accordingly, they are recorded in the Company’s assets and liabilities. The leases are payable to Systems Trading, Inc. and IBM with combined monthly installments of $57,757 through various dates in 2013 and 2012. The leases are secured with the computer equipment.  Interest rates on capitalized leases vary from 6%-12% and are imputed based on the lower of the Company’s incremental borrowing rate at the inception of each lease or the lessor’s implicit rate of return.
 
Future minimum lease payments under the capital leases are as follows:
 
       
    As of June 30, 2013
 
$
1,045,266
 
    Less amount representing interest
   
(36,777
)
    Total obligations under capital leases
   
1,008,489
 
    Less current portion of obligations under capital leases
   
(787,996
)
    Long-term obligations under capital leases
 
$
220,493
 
  
Long-term obligations under capital leases at June, 2013 mature as follows:
 
       
       For the year ending June 30,
       
              2014
 
$
787,996
 
              2015
   
215,089
 
              2016
   
5,404
 
         
   
$
1,008,489
 
 
The assets held under the capital leases are included in property and equipment as follows:
 
       
Equipment
 
$
1,571,784
 
Less: accumulated depreciation
   
654,815
 
         
   
$
916,969