Annual report pursuant to Section 13 and 15(d)

Long-Term Debt

v3.3.1.900
Long-Term Debt
12 Months Ended
Dec. 31, 2015
Long-Term Debt [Abstract]  
Long-Term Debt

Note 6 – Long-Term Debt

 

During 2015, the Company acquired WRE and the related debt outstanding as of the acquisition date. See note 10, Acquisitions, for a breakdown of the purchase price allocation and total acquired debt, most of which relates to equipment financing on acquired equipment.

 

Following is a breakdown of non-related party long term debt:

 

    2015     2014  
             
Notes payable to various banks, to finance various equipment    purchases, payable in monthly installments between $646 and $10,107, with interest rates ranging from 2.39% to 9.63% maturing from December  30, 2015 through     December 28, 2020     $ 604,005     $ -  
Less current portion of long-term debt:         (184,932 )     -  
Long-term debt, net of current portion       $ 419,073     $ -  

  

The aggregate annual maturities of non-related party long-term debt are as follows:

 

2015   $ 184,932  
2016     141,399  
2017     126,203  
2018     127,899  
2019     23,572  
Total   $ 604,005  

 

Related Party Shareholder Loan

 

The Company has a note due the largest shareholder of the Company. This note is unsecured, matures on December 31, 2016 and carries a 1% interest rate. The balance of the note as of December 31, 2015 and 2014 was $504,547 and $756,337 respectively. During 2015, the Company paid down the Shareholder note by approximately $250,000. During the years ended December 31, 2015 and 2014, the Company incurred related party interest expense of $6,304 and $8,472. Total related party accrued interest related to this note as of December 31, 2015 and 2014 was $28,612 and$22,308, respectively.

 

On October 15, 2015, the Company acquired a related entity that was 50% owned by the largest shareholder of the Company. As part of that acquisition, the Company acquired a shareholder note owed to the same majority shareholder of the Company. The balance of the note, including accrued interest on the acquisition date was $1,512,753.

 

The combined balances of these related party notes at December 31, 2015 were $2,017,301. Subsequent to year end, the Board and the Shareholder mutually agreed to convert $2,000,000 of the Notes balance to 10% cumulative preferred stock; these notes have been included in long-term liabilities due to the conversion subsequent to year end. The remaining balance of the related party note after conversion was approximately $13,000.