Craig A. Smith - Laserfiche WebLink

Home Browse Search

Craig A. Smith & Associate, Inc. and N PS3D, LLC Notes to Financial Statements Note 4 — Other Assets Technology License The Company entered into a technology license agreement for the use of Witten Technologies proprietary 3D radar tomography. The technology is used to locate underground utilities to assist in engineering projects. As of December 31, 2014 and 2013 the Witten Technologies License is recorded as $60,000 with accumulated amortization of $60,000 and $54,000 respectively. In both 2014 and 2013 the Company recorded $6,000 in amortization expense related to the technology license. The license automatically renews annually with no fee unless there is a material breech of the agreement. Note 5 — Debt Note Payable — Bank The Company entered into a $610,700 Promissory Note Payable ("Note") with JP Morgan Chase Bank in 2011. The note has a 60 month term which commenced March 2011 with monthly principal and interest payments of $11,905. Interest on the Note is calculated at 6.14% per annum based on a year of 360 days. The final payment is due April 2016. During the years ended December 31, 2014 and 2013 the Company incurred $15,660 and $23,318 of interest expense respectively related to the Note. The balance on the note payable was $182,084 and $309,289 as of December 31, 2014 and 2013, respectively. In 2012 the Company entered into a $64,000 Promissory Note Payable ("Note") with JP Morgan Chase Bank related to the purchase of a building. The Note has a 10 year term which commenced April 1, 2012 with monthly principal and interest payments of $435. Interest on the Note is calculated at 5.25% per annum based on a year of 360 days. The final payment is due March 1, 2022. During the years ended December 31, 2014 and 2013 the Company incurred $3,104 and $3,295 of interest expense respectively related to the Note. The balance on the note payable was $58,639 and $60,761 as of December 31, 2014 and 2013 respectively. The Company's assets are pledged as collateral related to the notes with JP Morgan Chase Bank. The following is a summary of principal maturities of the notes payable during the next five years and thereafter: Year ended December 31, 2015 $ 137,588 2016 49,076 2017 2,478 2018 2,609 2019 and thereafter 48,972 $ 240,723 Line of Credit In 2011 the Company executed a $300,000 revolving line of credit Promissory Note Payable ("LOC") with JP Morgan Chase Bank. Interest on the line of credit is equal to the sum of the Prime Rate in effect from time to time plus 4.50 percentage points. As of December 31, 2014 and 2013, the Company's balance related to the LOC was $270,000 and $299,981 respectively. During the years ended December 31, 2013 and 2012 the Company incurred $18,640 and $13,428 of interest expense respectively related to the LOC. The Company's assets are pledged as collateral related to the line of credit with JP Morgan Chase Bank. -10- 75