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Subsequent Events
3 Months Ended
Nov. 30, 2013
Notes to Financial Statements  
Subsequent Events

NOTE 9: SUBSEQUENT EVENTS

 

On December 16, 2013, the Company refinanced the mortgage on the Sono-Tek Industrial Park in Milton, New York, where the Company’s offices and manufacturing facility are located.

 

Prior to the refinancing, the Company reduced the outstanding mortgage with a cash payment of $323,000. The payment occurred after the balance sheet date.

 

Under the terms of the refinancing, M&T Bank loaned the Company $1,600,000 which accrues interest at the rate of 4.15% per annum and has a repayment term of ten years. The loan is secured by a mortgage on the Sono-Tek Industrial Park. The M&T Bank loan replaces the acquisition financing that was obtained from the seller of the Sono-Tek Industrial Park under which approximately $1,600,000 remained outstanding and which accrued interest at a rate of 5.5% per annum and had a repayment term of twenty years, with seventeen years remaining.

 

The Company has evaluated all other subsequent events for disclosure purposes.