Annual report pursuant to Section 13 and 15(d)

Capital Lease Obligations

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Capital Lease Obligations
 12 Months Ended
Dec. 31, 2011
Capital Lease Obligations [Abstract]  
Debt and Capital Leases Disclosures [Text Block]

Note 5 – Capital lease obligations
 
 
The Company acquired capital leases in the acquisition of SafeData. The economic substance of the leases is that the Company is financing the acquisitions through the leases and accordingly, they are recorded in the Company’s assets and liabilities. The leases are payable to Systems Trading, Inc. and IBM with combined monthly installments of $56,136 through various dates in 2011 and 2012. The leases are secured with the computer equipment.  Interest rates on capitalized leases vary from 6%-12% and are imputed based on the lower of the Company’s incremental borrowing rate at the inception of each lease or the lessor’s implicit rate of return.
 
 
Future minimum lease payments under the capital leases are as follows:
  
       
    As of December 31, 2011
   $ 1,068,815  
    Less amount representing interest
     (59,862 )
    Total obligations under capital leases
     1,008,953  
    Less current portion of obligations under capital leases
     (499,325 )
    Long-term obligations under capital leases
   $ 509,628  
 
 
Long-term obligations under capital leases at December 31, 2011 mature as follows:
  
       
For the year ending December 31, 2012
   $ 500,020  
           2013
     301,656  
           2014
     175,642  
           2015
     31,635  
         
    $ 1,.008,953  
 
 
The assets held under the capital leases are included in property and equipment as follows:
  
       
Equipment
  
$
1,262,488
  
Less: accumulated depreciation
    
295,365
  
         
   
$
967,123