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.  Interest 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. For the six months ended June 30, 2015 the Company made principal payments in the amount of $154,852.  Interest expense on the note was $121,945 and $308,573 for the three and six months ended June 30, 2015, respectively.  Interest expense was $53,404 for the three and six months ended June 30, 2014, respectively. 

                As of June 30, 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.  For the six months ended June 30, 2015 the Company made principal payments in the amount of $12,477.  Interest expense on the note was $20,480 and $40,668 for the three and six months ended June 30, 2015, respectively.  No interest expense was incurred on the note during the three and six months ended June 30, 2014, respectively.

                As of June 30, 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 June 30, 2015 is as follows:

Amortization expense was $29,796 and $59,593 for the three and six months ended June 30, 2015, respectively. Amortization expense was $7,776 for the three and six months ended June 30, 2014, respectively.  Amortization expense is included in the “Interest Expense” line item in the accompanying Statements of Operations.