NOTE 9 – LEASES

The Company is obligated under capital leases for buildings and vehicles that expire at various dates through 2043. Property and equipment and related accumulated amortization recorded under capital leases consists of the following:

March 31,	2017

Gross asset value	$	5,028,147
Less accumulated amortization		(86,252	)

Net book value	$	4,941,895

Amortization expense of approximately $86,000 for assets held under capital lease obligations is included in depreciation and amortization for the quarter ended March 31, 2017.

Future minimum capital lease payments were as follows at March 31, 2017:

March 31, 2018	$	887,428
March 31, 2019		855,694
March 31, 2020		847,522
March 31, 2021		822,180
March 31, 2022		822,368
Thereafter		6,804,627

Total payments		11,039,819
Less interest		(3,993,603	)

		7,046,216
Less current		(534,901	)

	$	6,511,315