Quarterly report pursuant to Section 13 or 15(d)

Notes and Other Obligations

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Notes and Other Obligations
9 Months Ended
Sep. 30, 2014
Notes and Other Obligations [Abstract]  
Notes and Other Obligations

Note 4. Notes and Other Obligations:

 

Notes payable and other obligations consisted of the following:

 

   

September 30,
2014
(Unaudited)

   

December 31,

2013

 
         

Mortgage notes

  $ 2,187,801     $ 2,296,919  

Other short-term installment obligations

    255,607       173,460  
                 
      2,443,408       2,470,379  

Less current portion

    407,219       319,771  
                 
    $ 2,036,189     $ 2,150,608  

 

Mortgage notes:

 

The Company has a mortgage facility on its land and building. The mortgage is held by a commercial bank and includes approximately 35% that is guaranteed by the U. S. Small Business Administration (“SBA”). The loan is collateralized by the real property and the SBA portion is also personally guaranteed by a former officer of the Company. The commercial bank portion of the mortgage was refinanced with the existing lender in May 2013. The revised terms include a payment schedule based on a fifteen year amortization, with a balloon maturity at five years. The commercial bank portion has the interest rate fixed at 3.95%, and the SBA portion bears interest at the rate of 5.86%. The commercial bank portion of the loan requires total monthly payments of approximately $11,700, which includes approximately $5,200 per month in interest. The SBA portion of the loan requires total monthly payments of approximately $9,200 through July 2023, which currently includes approximately $3,500 per month in interest and fees.

 

Future maturities:

 

The Company's total debt obligations require minimum annual principal payments of approximately $132,000 for the remainder of 2014, $313,000 in 2015, $159,000 in 2016, $166,000 in 2017, $1,268,000 in 2018 and $405,000 thereafter, through the terms of the applicable debt agreements.