Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

v3.5.0.2
Long-Term Debt
6 Months Ended
Jun. 30, 2016
Long-Term Debt [Abstract]  
Long-Term Debt

Note 6 – Long-Term Debt

 

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   $ 495,503     $ 604,005  
Less current portion of long-term debt:     (146,073 )     (184,932 )
Long-term debt, net of current portion   $ 349,430     $ 419,073  

 

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

 

Period Ending June 30,      
2017   $ 146,073  
2018     132,555  
2019     131,387  
2020     71,235  
2021     14,253  
Total   $ 495,503  

 

Related Party Shareholder Loan

 

The Company had a note due to 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 June 30, 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.

 

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.