NOTE 8. BANK NOTES PAYABLE
The Company previously had lines of credit with a bank for amounts up to
$1,650,000. The lines of credit have been consolidated into one loan, bearing
interest at 13% and matured on December 31, 2003. The interest rate has been
reduced to 10% and the loan has been extended to March 31, 2005. The terms are
four principal payments of $300,000, plus interest per quarter beginning on
March 31, 2004, and one final principal and interest payment of $25,625 due on
March 31, 2005. The loan is secured by the assets of the Company and guaranteed
by our largest shareholder. As of December 31, 2003, the Company had a total
outstanding principal balance of $1,525,000 and accrued interest totaled
$43,986. During the nine months ended December 31, 2003, the bank forgave
$239,185 of interest and fees related to the lines of credit. |
