Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

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Long-Term Debt
3 Months Ended
Mar. 31, 2016
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, the equipment of which was also acquired.

 

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

    2016     2015  
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 June 30, 2016 through December 28,2020   $ 546,059     $ 604,005  
Less current portion of long-term debt:     (162,382 )     (184,932 )
Long-term debt, net of current portion   $ 383,677     $ 419,073  

 

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

 

Year Ending      
2017   $ 162,382  
2018     136,154  
2019     128,764  
2020     99,906  
2021     18,853  
Thereafter   $ 546,059  

 

Related Party Shareholder Loan

 

The Company had a note due the largest shareholder of the Company. This note was unsecured, had a maturity date of December 31, 2016 and carried a 1% interest rate. On approximately January 1, 2016, the Note was converted to 10% cumulative preferred stock and the Note was cancelled. The total converted debt was $2,000,000. The balance of the note as of March 31, 2016 and December 31, 2015 was $0 and $2,017,301, respectively. The residual balance of $17,301 that was not converted, was reclassified to a short term, unsecured, non-interest bearing related party payable, included with due to related party on our Consolidated Balance Sheet.

 

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. As discussed above, $1,500,000 of this total was converted to Preferred Stock on approximately January 1, 2016.