Quarterly report pursuant to Section 13 or 15(d)

Capital Lease Obligations

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Capital Lease Obligations
9 Months Ended
Sep. 30, 2012
Capital Lease Obligations [Abstract]  
Capital Lease Obligations
Note 5 – 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 $47,819 through various dates in 2011 and 2015. 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 September 30, 2012
 
$
1,245,118
 
Less amount representing interest
   
       (79,596
)
Total obligations under capital leases
   
1,165,522
 
Less current portion of obligations under capital leases
   
(684,593
)
Long-term obligations under capital leases
 
$
      480,929
 
 
 Long-term obligations under capital leases at September 30, 2012 mature as follows:
 
For the twelve months ending September 30,
     
2013
  $ 684,593  
2014
    330,798  
2015
    150,131  
    $ 1,165,522  
 
The assets held under the capital leases are included in property and equipment as follows:
 
       
Equipment
 
$
1,571,784
 
Less: accumulated depreciation
   
    (404,390
)
   
$
1,167,394