Annual report pursuant to Section 13 and 15(d)

Debt

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Debt
12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
DEBT
4. DEBT

 

Notes payable at December 31, 2017 consisted of the following:

 

      Principal     Unamortized Discount and Debt Issuance Costs  
  Senior Secured Notes, due June 30, 2018 (discount is based on imputed interest rate of 26%)   $ 5,750,000     $ 987,500  

 

The debt issuance costs of $237,500 and the unamortized discount of $750,000 will be amortized into interest expense over the life of the loan. As the debt matures on June 30, 2018, the entire amount will be expensed as interest expense in 2018.

 

As of December 31, 2017 long-term debt consisted of the following:

 

    2017     2016  
               
  Secured mortgage payable to Bank for the purchase of the 100 Commerce Drive Building due in monthly installments of $11,951. The interest rate is 6.5% and the maturity date is November 1, 2026.   $ 1,741,379     $ 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 paid off in May 2017     -       50,000  
        2,091,379       2,167,950  
  Less current portion     381,497       79,521  
  Long term debt   $ 1,709,881     $ 2,088,429  

 

Aggregate maturities of long-term debt are as follows:

 

  2019     33,607  
  2020     35,857  
  2021     38,259  
  2022     44,344  
  2023     43,791  
  Thereafter     1,514,023  
        1,709,881