CAPITAL LEASES

3 Months Ended

Mar. 31, 2015

NOTE 3 – CAPITAL LEASES

The Company leases various laboratory equipment under capital leases. The economic substance of the leases are that the Company is financing the acquisition of the assets through leases, and accordingly, they are recorded on the Company’s books as assets and liabilities.

The following is an analysis of the leased assets included in property and equipment at March 31, 2015 and December 31, 2014 and depreciation expense for the three months ended March 31, 2015 and 2014:

	March 31, 2015		December 31, 2014
Machinery and equipment	$	887,729	$	869,131
Less: Accumulated depreciation		267,818		185,636

	$	619,911	$	683,495

		Three Months Ended March 31, 2015		Three Months Ended March 31, 2014
Depreciation Expense	$	82,182	$	10,358

The following is a schedule of future minimum payments required under the lease together with their present values as of March 31, 2015:

	March 31, 2015

2015	$	211,272
2016		279,613
2017		135,530

Total minimum lease payments		626,415

Total amount representing interest		58,913

Present value of minimum lease payments	$	567,502

CannLabs, Inc. 10-Q