Annual report pursuant to Section 13 and 15(d)

Capital Lease Obligations

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Capital Lease Obligations
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Capital Lease Obligations

Note 12 – Capital Lease Obligations

 

The Company leases various assets under capital leases that consisted of the following:

 

    December 31, 2018     December 31, 2017  
             
Medical equipment   $ 742,745     $ 4,686,736  
Less accumulated depreciation     (723,318 )     (3,842,443 )
                 
Net   $ 19,427     $ 844,293  

 

Depreciation expense on assets under capital leases was $0.5 million and $1.0 million for the years ended December 31, 2018 and 2017, respectively.

 

As of December 31, 2018, the Company is in default of the majority of its lease obligations, therefore the aggregate future minimum rentals and accrued interest under capital leases in the amount of $0.8 million are deemed to be due immediately and payments totaling $31,543 are due in 2020. The significant reduction in the leased assets at December 31, 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 two years. For the year ended December 31, 2018, the Company recorded a non-cash gain of $551,155 on the sale of leased equipment.