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Note 6 - Leases

9 Months Ended

Sep. 30, 2013

Leases of Lessee Disclosure [Text Block]

NOTE 6 – LEASES

Operating Leases -- The Company leases office and production facilities under operating lease agreements expiring in February 2017 and August 2018. Some of these lease agreements have an option to extend.

The future minimum lease payments for non-cancelable operating leases having remaining terms in excess of one year for the periods ending December 31 are as follows:

	Operating Lease Payments
2013	$	143,432
2014		612,872
2015		629,286
2016		646,147
2017		488,075
Thereafter		308,444
Total Minimum Lease Payments	$	2,828,256

Lease expense charged to operations was $578,313 and $528,360 for the nine months ended September 30, 2013 and 2012, respectively.

Capital Lease -- The Company leases equipment on various capital leases calling for monthly payments of $11,902, $4,612, $2,987 and $2,127 expiring through April 2017. Included in property and equipment, at September 30, 2013 and December 31, 2012, the Company had equipment on capital lease of $1,568,466 and $1,570,337, respectively, with related accumulated depreciation of $834,699 and $653,529, respectively.

During the nine months ended September 30, 2013 and 2012, depreciation expense for equipment on capital lease obligations amounted to $160,933 and $158,857, respectively, and has been included in depreciation expense. During the nine months ended September 30, 2013 and 2012, interest expense on capital lease obligations amounted to $38,442 and $49,725, respectively.

Future minimum capital lease payments are as follows for the periods ending December 31:

	Capital Lease Payments
2013	$	64,884
2014		254,778
2015		222,251
2016		215,148
2017		138,149
Thereafter		-
Total minimum lease payments		895,210
Less amount representing interest		(94,284	)
Present value of minimum lease payments		800,926
Less current portion		(207,514	)
Long-term lease payments	$	593,412

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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