|9 Months Ended|
Sep. 30, 2015
|Debt Disclosure [Abstract]|
NOTE 12 NOTE PAYABLE
In July 2011, the Company entered into a $1,400,000 note agreement with the City of North Vernon, Indiana. Interest accrues at 5.5% and the note matures on August 1, 2016. As of September 30, 2015 and December 31, 2014, the note had an outstanding balance of $1,280,000 and $1,325,000, respectively.
The Company was unable to pay the interest and principal payments due on August 1, 2012 and was in default of such payment. The Company was able to negotiate payment terms with the City of North Vernon, Indiana, which allowed the Company to delay scheduled repayments of the loan.
During the nine months ended September 30, 2015 and 2014, the Company made $45,000 and $60,000, respectively, in payments to the City of North Vernon for principal.
Principal and interest payments are expected to be paid in each fiscal year as follows:
Interest expense incurred and accrued on the note payable was approximately $53,000 and $68,000 for the nine months ended September 30, 2015 and 2014, respectively.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef