CAPITAL LEASES

12 Months Ended

Dec. 31, 2018

Capital Leases in Financial Statements of Lessee Disclosure [Text Block]

NOTE 7 — CAPITAL LEASES

	2018			2017
Capital equipment lease dated April 5, 2018	$	13,056		$	-
Capital equipment lease dated May 8, 2018		14,525			-
Capital equipment lease dated June 27, 2018		21,701			-
Capital equipment lease dated September 18, 2018		15,368			-
Capital equipment lease dated September 28, 2018		16,672
Total capital leases payable		81,322			-
Less current portion		(30,172	)		-
Long term portion	$	51,150		$	-

During the year ended December 31, 2018, the Company entered into five capital leases for computer equipment for a three-year term. The Company recognized these arrangements as capital leases based on the determination the leases exceeded 75% of the economic life of the underlying assets. The Company initially recorded the equipment and the capitalized lease liability at the estimated present value of the minimum lease payments of $95,506.

The leases include base monthly payments in aggregate of $2,894, due on the contract monthly anniversary of each calendar month. At the expiration of the lease, the Company is required to return all leased equipment to the lessor with right of repurchase at fair value. The Company has made payments in the amount of $14,184 during the year ended December 31, 2018.

The effective interest rate of the capitalized lease is estimated at 6.00% based on the

implicit rate in the lease agreements

The following summarizes the assets under capital leases:

	2018			2017
Classes of property
Computer equipment	$	95,506		$	-
Less: accumulated depreciation		(16,117	)		-
	$	79,389		$	-

The following summarizes total future minimum lease payments at December 31, 2018:

Period ending December 31,
2019	$	34,729
2020		34,729
2021		18,985
Total minimum lease payments		88,443
Amount representing interest		7,121
Present value of minimum lease payments		81,322
Current portion of capital lease obligations		30,172
Capital lease obligation, less current portion	$	51,150