Quarterly report pursuant to Section 13 or 15(d)

Capital Lease Obligations

Capital Lease Obligations
9 Months Ended
Sep. 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 September 30, 2018 (unaudited) and December 31, 2017, capital lease equipment consisted of the following:


    September 30, 2018     December 31, 2017  
Medical equipment   $ 742,745     $ 4,686,736  
Less accumulated depreciation     (618,931 )     (3,842,443 )
Net   $ 123,815     $ 844,293  


As of September 30, 2018, the Company is in default of substantially all its lease obligations, therefore the aggregate future minimum rentals and accrued interest under capital leases in the amount of $988,936 are deemed to be due. The significant reduction in the leased assets at September 30, 2018 from December 31, 2017, was due to the sale and or surrender of certain leased medical equipment relating to our laboratory operations which have significantly decreased in size over the past 24 months.


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.