Quarterly report pursuant to Section 13 or 15(d)

SALE-LEASEBACK TRANSACTION - OPERATING LEASE

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SALE-LEASEBACK TRANSACTION - OPERATING LEASE
9 Months Ended
Nov. 30, 2011
SALE-LEASEBACK TRANSACTION - OPERATING LEASE [Abstract]  
SALE-LEASEBACK TRANSACTION - OPERATING LEASE

NOTE 6  SALE-LEASEBACK TRANSACTION - OPERATING LEASE


On February 25, 1999, the Company entered into a sale-leaseback arrangement whereby the Company sold its land and building at 24 Carpenter Road in Chester, New York and leased it back for a period of 20 years. The leaseback is accounted for as an operating lease. The gain of $449,617 realized in this transaction has been deferred and is amortized to income in proportion to rental expense over the term of the related lease.


At November 30, 2011 minimum future rental payments are:


         

Year

 

Minimum Rental Payments

 

 

 

 

 

 

2012

 

$

132,504

 

2013

 

 

132,504

 

2014

 

 

132,504

 

2015

 

 

132,504

 

2016

 

 

132,504

 

Thereafter

 

 

298,134

 

 

 

$

960,654

 


Rent expense aggregated $33,126 for the three months ended November 30, 2011 and 2010 and $99,378 for the nine months ended November 30, 2011 and 2010.