11 COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES

11. COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES

Capital Lease

MGD leased certain machinery and equipment in 2014 and 2013 under an agreement that is classified as a capital lease.  The cost of equipment under capital leases is included in the balance sheets as property, plant and equipment and was $33,121 and $44,946 at September 30, 2015 and December 31, 2014, respectively.  Accumulated depreciation of the leased equipment at September 30, 2015 and December 31, 2014 was $105,588 and $109,908, respectively.

Operating Lease

IPIC is currently obligated under two operating leases for office spaces and associated building expenses.  One of the leases expires in December 2015 and the other lease is on a month to month basis.

For the nine months ended September 30, 2015 and 2014, International Production and MGD had rent expense of $8,314 and $53,133, respectively.