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I I .e I I I I I I Ie I I I I I I I .e I CUBELLlS BUSINESS TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 5 - Lines of Credit Thc balance at December 31, 2005 includes S 1,916,434 of advances against a 52,500,000 operating line of creoit ano S I .325.000 of advances against a S 1 ,800,000 acquisition line of crcoit, both with a commercial bank. Advances under the lines of credit are payable on demano. Interest at the one month I.mOR rate plus 1. 75% (6.135% at December 31, 2005) is payable monthly. The lines of credit are secured by substantially all the assets of the Company and the personal guarantees 0 I' the sharcho Iders. The balance at Dl:ccmber 31, 2004 represents advances under a S I ,800,000 line of credit from a tinancing company. Amounts outstanding under this line of credit were refinanced in 2005 with procl:l:ds from the operating linc afcredit described above. Note 6 - Capital Leases Equipment, with an original cost of5I,729,19\ and 5367,816 and a net book value ofS] ,082,250 and '566.713 at December 3 I, 2005 and 2004, respectively, is being leased under several capital 1e3ses that expire on various dates through November 2010. AmortiLation expense on assets acquired under capital leases is includeo with depreciation. The following is a schedule, by years, of future minimum lease paymcnts under the capital leases and the present value of the net minimum lease payments: 2006 2007 2008 2009 2010 S 628,710 552,136 241,254 82,187 64..1 72 Total minimum lease payments Less amount representing interest 1,568,659 __205,224 Present valuc or minimum lease payments Less current portion 1,363.435 538,82~ Long teml portion of capitallcase obligations s 824,610 The present value or ttlturc m1l1imum lease payments is based on dIscounts of individual Icasl:s at interest rates ranging from 4.43'~',) to 13.30o;(). ()