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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) <br /> <br />SOUTHEASTERN PRINTING COMPANY, INC. AND SUBSIDIARY <br /> <br />December 31, 2018 <br />(See Independent Accountant's Review Report) <br /> <br /> <br />- 9 - <br />NOTE F - CONCENTRATIONS OF CREDIT RISK <br /> <br />The Company maintains its cash balances in two financial institutions. These balances are insured by the <br />Federal Deposit Insurance Corporation subject to various limits and conditions. At December 31, 2018, the <br />uninsured amounts held at these financial institutions totaled $356,269. <br /> <br />The Company made purchases from two vendors totaling approximately $5,857,000 in 2018, which comprises <br />more than 10% of total purchases for the year ended December 31, 2018. As of December 31, 2018, the <br />Company had accounts payable to these vendors totaling approximately $555,000. <br /> <br /> <br />NOTE G - OTHER ASSETS <br /> <br />Following is a summary of other assets as of December 31, 2018: <br /> <br />Deposits 102,060$ <br />Employee advance 218 <br />Goodwill 107,875 <br />Customer list, net of accumulated amortizaton of $8,859 97,441 <br />307,594$ <br /> <br />During 2017, the Company acquired intellectual property from the purchase of a customer list from Dutton <br />Press, Inc. in the amount of $106,300. The customer list is subject to periodic amortization over the estimated <br />useful life of 15 years. Amortization expense totaled $7,087 at December 31, 2018. Amortization expense for <br />each of the next five years is $7,087 each year. <br /> <br /> <br />NOTE H - OPERATING LEASES <br /> <br />The Company leases equipment and facilities under operating leases extending to December 2024. In addition, <br />the Company leases various equipment as needed. Monthly payments range from $200 to $31,900. Rental <br />expense charged to operations totaled $883,210 for the year ended December 31, 2018. See Note J for related <br />party lease. <br /> <br />Following is a summary of future minimum rental payments under operating leases that have initial or <br />remaining non-cancellable terms in excess of one year as of December 31, 2018: <br /> <br />2019 1,045,784$ <br />2020 974,656 <br />2021 772,174 <br />2022 627,264 <br />2023 505,032 <br />Thereafter 382,800 <br />4,307,710$ <br />