Note 3 – Notes Payable Related to Acquisitions

Omaha Note Payable

In order to finance a portion of the purchase price for the Omaha facility, on June 5, 2014 the Company entered into a Term Loan and Security Agreement with Capital One, National Association (the “Lender”) to borrower $15.06 million (the “Loan”). The Loan bears interest at 4.91% per annum and all unpaid interest and principal is due on June 5, 2017 (the “Maturity Date”). Interest is paid in arrears.  Payments began on August 1, 2014 and are due on the first day of each calendar month thereafter. Principal payments began on January 1, 2015 and are due on the first day of each calendar month thereafter based on an amortization schedule with the principal balance due on the Maturity Date. As of March 31, 2015 the Company made principal payments in the amount of $78,970.  Interest expense on the note was $186,628 for the three months ended March 31, 2015.  There was no interest expense incurred for the three months ended March 31, 2014.   

As of March 31, 2015, scheduled principal payments due in each calendar year listed below are as follows:

Asheville Note Payable

In order to finance a portion of the purchase price of the Asheville facility, on September 15, 2014 the Company entered into a Promissory Note with the Bank of North Carolina to borrow $1.7 million.  The note bears interest on the outstanding principal balance at the simple, fixed interest rate of 4.75% per annum and all unpaid principal and interest is due on February 15, 2017.  Commencing on October 15, 2014, the Company will make on the 15^th of each calendar month until and including March 15, 2015, monthly payments consisting of interest only.  Thereafter, commencing on April 15, 2015, the outstanding principal and accrued interest shall be payable in monthly amortizing payments of $10,986 each on the 15^th day of each calendar month, until and including January 15, 2017.  Interest expense on the note was $20,188 for the three months ended March 31, 2015.  There was no interest expense incurred for the three months ended March 31, 2014.   

As of March 31, 2015, scheduled principal payments due in each calendar year listed below are as follows:

Deferred Financing Costs

The Company incurred deferred financing costs related to the Omaha and Asheville loans.  A rollforward of the deferred financing cost balance as of March 31, 2015 is as follows:

Amortization expense is included in the “Interest Expense” line item in the accompanying Statements of Operations.  No amortization expense was incurred for the three months ended March 31, 2014.