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Notes Payable
 3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
Note 8 - Notes Payable

Notes payable consist of the following:

 

   

March 31,

2015

    

December 31,

2014

  
             
Note payable to Private Bank in monthly installments of $42,222, plus variable interest rate (currently 2.67%) with a balloon payment for the remaining balance. Collateralized by substantially all assets of the Company. Maturity date - May 31, 2018.   $ 4,225,555     $ 4,352,222  
                 
Note payable to Private Bank in monthly installments of $27,778, plus variable interest rate (currently 2.67%) with a balloon payment for the remaining balance, maturing on May 31, 2019, collateralized by substantially all assets of the Company.     4,500,000       4,583,333  
                 
Notes payable to Ford Credit Corp. payable in monthly installments of $1,778 at 5.99%, paid March 2015.     —       12,198  
                 
Note payable to Fletcher Jones of Chicago, Ltd LLC in monthly installments of $1,769 at 6.653%, paid in March 2015.     —       49,047  
Total notes payable     8,725,555       8,996,800  
Less current maturities     840,000       872,285  
Total long-term portion   $ 7,885,555     $ 8,124,515  

 

 

In accordance with the Private Bank agreements referenced above, the Company is subject to minimum fixed charged ratio and tangible net worth thresholds. The Company was in compliance with these financial covenants at March 31, 2015.  Further, the Company is required to deliver its annual and quarterly consolidated financial statements and related SEC filings within specified timeframes. Due to the Company’s delay in completing such filings the Company obtained waivers as further discussed in Note 14.

 

In addition, as of March 31, 2015 the Company had a $5 million revolving credit facility with The Private Bank. Borrowings under the facility were subject to interest at the prime rate or LIBOR plus 2.5%. At March 31, 2015 there were no borrowings under the facility. The facility expires on July 31, 2016.

 

Maturities of notes payables are as follows:

 

For the 12 Months Ended March 31,    
2016   $ 840,000  
2017     840,000  
2018     840,000  
2019     3,038,899  
2020     3,166,656  
Total   $ 8,725,555