Notes Payable |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Notes Payable | Note 9 - Notes Payable Notes payable consists of the following:
Equipment notes During the year ended December 31, 2020, ANC Smith’s entered into secured loan agreements with an aggregate principal balance of $0.7 million for the purchase of certain equipment. The equipment notes bear interest at a fixed rate of 2.85% and are due to be repaid in monthly installments over their five year terms. ANC Potter’s is party to equipment loan agreements, the proceeds of which were used to purchase certain equipment and a truck. The loans have remaining terms ranging from less than one year to five years, with approximate monthly principal payments of $8,505, and bear a weighted average annual interest rate of 4.5%. There were no security interests granted under the terms of the equipment notes. ANC Zodega assumed secured loan agreements, as part of the acquisition discussed in Note 1, with an aggregate principal balance of $0.1 million for the purchase of certain equipment. The equipment notes bear interest at a fixed rate of 6.0% and are due to be repaid in monthly installments over the three year terms. During the nine months ended September 30, 2021, the Company made aggregate principal payments of approximately $173,000 on its equipment notes. During the nine months ended September 30, 2020, the Company made aggregate principal payments of approximately $33,000 on its equipment notes. Promissory notes On February 19, 2021, the Company entered into an agreement with CJ’s Yardworks, Inc. to issue a promissory note of $400,000, which bears interest at 5.0% of the principal amount. The payments for this note began three months after closing (May 19, 2021). The promissory note matures on February 19, 2026. The note is to be repaid by sixty equal payments of $7,548 commencing in March 2021. On March 12, 2021, the Company entered into an agreement with Lillard Lawn & Landscape Inc. to issue a promissory note of $420,000, which bears interest at 6.0% of the principal amount. The payments for this note shall not begin until the first business day of the seventh full calendar month after closing (October 12, 2021), and no interest shall accrue on the note until such time. The promissory note matures on March 12, 2026. The note is to be repaid by sixty equal payments of $8,120 commencing in October of 2021. During the nine months ended September 30, 2021, the Company made aggregate principal payments of approximately $78,000 on its promissory notes. PPP loans In April 2020, ANC Green Solutions I, ANC Potter’s and ANC Smith’s each qualified for and received a loan (the “PPP Loans”) pursuant to the Paycheck Protection Program, a program implemented by the U.S. Small Business Administration (“SBA”) under the Coronavirus Aid, Relief, and Economic Security Act, from qualified lenders. The PPP Loans bear interest at a fixed rate of 1.0% per annum, have terms of two years, and are unsecured and guaranteed by the SBA. The principal amounts of the PPP Loans are subject to forgiveness under the Paycheck Protection Program upon the Company’s request to the extent that the PPP Loan proceeds are used to pay expenses permitted by the Paycheck Protection Program, including payroll costs, covered rent and mortgage obligations, and covered utility payments incurred by the borrower. During the twelve months ended December 31, 2020, the Company applied for forgiveness of the PPP Loans with respect to these covered expenses. ANC Smith’s forgiveness application was accepted in November 2020 and the Company recognized $0.2 million in Other income on its consolidated statement of operations. In March 2021, ANC Potter’s PPP loan forgiveness application was accepted and the Company recognized $0.2 million in other income on its consolidated statement of operations. In April 2021, ANC Green Solutions’ PPP Loan forgiveness application was accepted and the Company recognized $0.2 million in other income on its consolidated statement of operations. |
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