LEASE OBLIGATION PAYABLE

9 Months Ended

Sep. 30, 2018

Lease Obligation Payable

LEASE OBLIGATION PAYABLE

NOTE 10 – 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 pay

ment (61 payments) which would transfer ownership to the Company. Total amortization related to the lease equipment as of September 30, 2018 is $50,897. 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 September 30, 2018. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022.

Year Ending
Remainder of 2018	$	10,774
2019		43,096
2020		43,096
2021		43,096
Thereafter		10,775
Total minimum lease payments		150,837
Less: Amount representing interest		(28,163	)
Present value of minimum lease payments	$	122,674