LEASE OBLIGATION PAYABLE

6 Months Ended

Jun. 30, 2017

Lease Obligation Payable

LEASE OBLIGATION PAYABLE

NOTE 11 – 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 June 30, 2017 is $2,679. The following is a schedule showing the future minimum leas payments under capital lease by year and the present value of the minimum lease payments as of June 30, 2017. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022. Future cash payment related to this capital lease are as follow for the six-month period remaining in 2017 and the calender years ending from 2018-2022 and thereafter. 

2017	$	21,547
2018		43,096
2019		43,096
2020		43,096
2021		43,096
2022		10,777
Total minimum lease payments		204,708
Less: Amount representing interest		49,248
Present value of minimum lease payments	$	155,460