Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

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Long-Term Debt
3 Months Ended
Mar. 31, 2017
Long-Term Debt [Abstract]  
LONG-TERM DEBT
4. LONG-TERM DEBT

 

Long-term debt consists of the following:

 

      March 31, 2017     December 31, 2016  
  Secured mortgage payable to Bank for the purchase of the 100 Commerce Drive Building due in monthly installments of $11,900.   $ 1,763,162     $ 1,767,950  
  Note payable, former building owner interest payment only due in monthly installments of $1,604 interest at 5.5%. A balloon payment of $350 thousand plus unpaid interest due August 2018.     350,000       350,000  
  Note payable to the City of Loveland with interest of 8%. The note is unsecured and contains restrictions on the use of proceeds.     50,000       50,000  
                   
        2,163,162       2,167,950  
  Less current portion     80,003       79,521  
  Long term debt   $ 2,083,159     $ 2,088,429  

 

Aggregate maturities of debt are as follows:

 

  2017     $ 72,319  
  2018       381,499  
  2019       33,607  
  2020       35,858  
  2021       38,260  
  Thereafter       1,601,619  
        $ 2,163,162  

 

The note payable to the City of Loveland contains job creation incentives whereby each annual payment may be forgiven by the City upon the Company meeting minimum job creation benchmarks. This loan agreement amended the incentives to 30 full time employees within the City of Loveland with payroll totaling $135,000 by October 31, 2013 and 40 employees with payroll totaling $175,000 by July 31, 2014, continuing with an average of 40 employees with payroll totaling $175,000 thereafter. The proceeds from this loan were to be used for qualified disbursements only, and the Company has been notified it did not meet the requirements for qualified disbursements and for forgiveness of the 2012 principal and interest payment, which is past due. In 2013 the Company made payments to an escrow account totaling $22,900.