2018-038A - Laserfiche WebLink

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Note 8 - Debt (continued) Future installment contract principal payments and capital lease minimum payments, interest, and principal in the aggregate are approximately as follows: Note 9 - Leases The Company leases various pieces of office and automotive equipment for approximately $16,600 per month through March, 2019 and at lesser amounts thereafter until September, 2020. Lease expense for the year ended June 30, 2017 for these and presently expired leases amounted to approximately $160,600. in addition to the afore mentioned operating leases the Company is engaged in nine capital leases (See Note 8) which are not included in the monthly payments in the schedule below. The following is a schedule of future minimum lease payments relating to all of the Company's operating leases: Year Ending June 30, 2018 $ 199,400 2019 $ 182,700 2020 $ 79,000 2021 $ 5,000 2022 $ - Thereafter $ NONE Note 10 - Provision (Credit) for income Taxes Deferred income taxes result from timing differences in reporting income for financial statement purposes and for tax purposes. Such differences relate to differences in the methods of providing for depreciation, the allowance for doubtful accounts, and credits for alternative minimum taxes incurred. The most significant timing difference is caused by accelerated depreciation methods being used for tax reporting while straight-line depreciation is used for financial reporting. The Company adopted Financial Accounting Standards Board Accounting Codification, Accounting for Income Taxes (ASC740), which requires the Company's deferred taxes to be recorded at the rate that is expected to be in effect when deferred taxes will be paid, rather than the rate in effect when the deferred taxes arise. _- 10 _ Capital Leases Year Ending Installment Minimum Imputed Total June 30, Contracts Payment Interest Net Debt 2018 $ 625,400 $ 66,600 $ 4,500 $ 62,100 $ 687,500 2019 $ 575,400 $ 18,000 $ 600 $ 17,400 $ 592,800 2020 $ 369,100 $ - $ - $ - $ 369,100 2021 $ 105,400 $ - $ - $ - $ 105,400 2022 Thereafter $ NONE $ NONE $ NONE $ NONE $ NONE Note 9 - Leases The Company leases various pieces of office and automotive equipment for approximately $16,600 per month through March, 2019 and at lesser amounts thereafter until September, 2020. Lease expense for the year ended June 30, 2017 for these and presently expired leases amounted to approximately $160,600. in addition to the afore mentioned operating leases the Company is engaged in nine capital leases (See Note 8) which are not included in the monthly payments in the schedule below. The following is a schedule of future minimum lease payments relating to all of the Company's operating leases: Year Ending June 30, 2018 $ 199,400 2019 $ 182,700 2020 $ 79,000 2021 $ 5,000 2022 $ - Thereafter $ NONE Note 10 - Provision (Credit) for income Taxes Deferred income taxes result from timing differences in reporting income for financial statement purposes and for tax purposes. Such differences relate to differences in the methods of providing for depreciation, the allowance for doubtful accounts, and credits for alternative minimum taxes incurred. The most significant timing difference is caused by accelerated depreciation methods being used for tax reporting while straight-line depreciation is used for financial reporting. The Company adopted Financial Accounting Standards Board Accounting Codification, Accounting for Income Taxes (ASC740), which requires the Company's deferred taxes to be recorded at the rate that is expected to be in effect when deferred taxes will be paid, rather than the rate in effect when the deferred taxes arise. _- 10 _