Quarterly report pursuant to Section 13 or 15(d)

Capital Lease Obligations

v3.10.0.1
Capital Lease Obligations
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Capital Lease Obligations

Note 11 – Capital Lease Obligations

 

The Company leases various assets under capital leases expiring through 2020 as follows. At June 30, 2018 (unaudited) and December 31, 2017, capital lease equipment consisted of the following:

 

    June 30, 2018     December 31, 2017  
             
Medical equipment   $ 4,253,123     $ 4,686,736  
Less accumulated depreciation     (3,879,729 )     (3,842,443 )
                 
Net   $ 373,394     $ 844,293  

 

As of June 30, 2018, the Company is in default of substantially all its lease obligations, therefore the aggregate future minimum rentals under capital leases in the amount of $1,246,853 are deemed to be current.

 

In December 2016, several lawsuits were filed for past due lease payment obligations. In January 2017, default judgements were issued against the Company aggregating to $3.5 million, including default interest, late fees, penalties and other fees (see Note 15). Additionally, the Company recognized additional interest expense of $0.6 million to recognize the additional obligations under these leases.