Quarterly report pursuant to Section 13 or 15(d)

Note Payable

v3.3.0.814
Note Payable
9 Months Ended
Sep. 30, 2015
Debt Disclosure [Abstract]  
Note Payable

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:

 

      Principal     Interest     Total  
2015     $ 62,838     $ 177,259     $ 240,097  
2016       1,217,162       114,276       1,331,438  
      $ 1,280,000     $ 291,535     $ 1,571,535  

 

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.