Annual report pursuant to Section 13 and 15(d)

Capital Lease Obligations

Capital Lease Obligations
12 Months Ended
Dec. 31, 2011
Capital Lease Obligations [Abstract]  
Debt and Capital Leases Disclosures [Text Block]

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 Companys assets and liabilities. The leases are payable to Systems Trading, Inc. and IBM with combined monthly installments of $56,136 through various dates in 2011 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 Companys incremental borrowing rate at the inception of each lease or the lessors implicit rate of return.
Future minimum lease payments under the capital leases are as follows:
    As of December 31, 2011
  $ 1,068,815  
    Less amount representing interest
    (59,862 )
    Total obligations under capital leases
    Less current portion of obligations under capital leases
    (499,325 )
    Long-term obligations under capital leases
  $ 509,628  
Long-term obligations under capital leases at December 31, 2011 mature as follows:
For the year ending December 31, 2012
  $ 500,020  
    $ 1,.008,953  
The assets held under the capital leases are included in property and equipment as follows:
Less: accumulated depreciation