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:

June 30,	2017

Gross asset value	$	5,028,147
Less accumulated amortization		(172,504	)

Net book value	$	4,855,643

Amortization expense of approximately $170,000 for assets held under capital lease obligations is included in depreciation and amortization for the six months ended June 30, 2017.

Future minimum capital lease payments were as follows at June 30, 2017:

June 30, 2018	$	888,649
June 30, 2019		844,717
June 30, 2020		840,930
June 30, 2021		866,199
June 30, 2022		687,861
Thereafter		6,690,229

Total payments		10,818,585
Less interest		(3,902,513	)

		6,916,072
Less current		(543,775	)

	$	6,372,297