LEASE OBLIGATION PAYABLE

3 Months Ended

Mar. 31, 2017

Lease Obligation Payable

LEASE OBLIGATION PAYABLE

NOTE 13 – LEASE OBLIGATION PAYABLE

The Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products business under an arrangement that is classified as a capital lease. The leased equipment is amortized on a straight line basis over its lease term including the last payment (61 payments) which would transfer ownership to the Company. Total amortization related to the lease equipment as of March 31, 2017 is $2,679. The following is a schedule showing the future minimum lease payments under capital lease by year and the present value of the minimum lease payments as of March 31, 2017. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022.

Year Ending
2017	$	32,322
2018		43,096
2019		43,096
2020		43,096
2021		43,096
Thereafter		10,776
Total minimum lease payments		215,482
Less: Amount representing interest		54,032
Present value of minimum lease payments	$	161,450