Annual report pursuant to Section 13 and 15(d)

Note Payable

v2.4.1.9
Note Payable
12 Months Ended
Dec. 31, 2014
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 December 31, 2014 and 2013, the note had an outstanding balance of $1,325,000 and $1,400,000, 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 twelve months ended December 31, 2014 and 2013, the Company made $75,000 and $125,000, respectively, in payments to the City of North Vernon for principal (2014) and accrued interest in 2014 and 2013.

 

Principal and interest payments are expected to be paid in each fiscal year as follows:

 

      Principal     Interest     Total  
2015     $ 107,838     $ 177,259     $ 285,097  
2016       1,217,162       114,276       1,331,438  
      $ 1,325,000     $ 291,535     $ 1,616,535  

 

Interest expense incurred and accrued on the note payable was approximately $122,000 and $95,000 for the years ended December 31, 2014 and 2013, respectively.