Long Term Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long Term Debt

12. Long Term Debt.

(a) In September 2014, NanoChem Solutions Inc. signed a $1,005,967 promissory note with Harris Bank with a rate of prime plus 0.5% (September 30, 2019 – 5.75%; December 31, 2018 – 5.75%) to be repaid over 5 years with equal monthly installments plus interest. Loan proceeds were used to retire the previously issued and outstanding debt obligations. The final payment was made in September 2019 (balance owing December 31, 2018 - $150,895). Interest expense for the six months ended September 30, 2019 was $3,294 (2018 - $7,983).

(b) In October 2018, NanoChem Solutions Inc. signed a $4,100,000 term loan with Harris Bank with a rate of prime (September 30, 2019 – 5.0%; December 31, 2018 – 5.5%) to be repaid over 7 years with equal monthly installments plus interest along two payments consisting of 25% prior year cash flow recapture, capped at $300,000, due May 31, 2019 and 2020. The money was used to purchase a 65% interest in EnP Investments LLC. Interest expense for the nine months ended September 30, 2019 was $152,005 (2018 - nil). The balance owing at September 30, 2019 was $3,263,095 (December 31, 2018 - $4,002,381).

The Company has committed to the following repayments:

2019	$	146,429
2020	$	585,714
2021	$	585,714
2022	$	585,714
2023	$	585,714

(c) In April 2019, NanoChem Solutions Inc. signed a loan for $1,100,000 with Harris Bank with a rate of prime plus 0.5% (September 30, 2019 – 5.75%) for the purchase of new manufacturing equipment. Interest expense for the nine months ended September 30, 2019 was $21,399 (2018 – nil). The Company pays interest monthly until February 2020, when equal monthly installments of the principal and interest are due until January 2024.

2020	$	252,083
2021	$	275,000
2022	$	275,000
2023	$	275,000

(d) In January, 2018, EnP Investments, LLC signed a $200,000 promissory note with Midland States Bank with a rate of 5.250% to be repaid over 7 years with equal monthly installments plus interest. This money was used to purchase production equipment. Interest expense for the six months ended September 30, 2019 was $6,770 (2018 - $6,780). The principal balance owing at September 30, 2019 is $158,849 (December 31, 2018 - $177,794).

The Company has committed to the following repayments:

2019	$	6,391
2020	$	25,562
2021	$	25,562
2022	$	25,562
2023	$	25,562

(e) In March, 2016, EnP Investments, LLC signed a $45,941 promissory note with Ford Motor Credit Company with a rate of 0.00% interest to be repaid over 5 years with equal monthly installments. The balance owing at September 30, 2019 is $13,782 (December 31, 2018 - $20,673).

The Company has committed to the following repayments:

2019	$	2,297
2020	$	9,188
2021	$	2,297

Continuity	September 30, 2019			December 31, 2018
Balance, beginning of year	$	4,351,743			352,089
Plus: Proceeds from loans		1,100,000			4,100,000
Plus: Acquisition of ENP		-			206,921
Less: Payments on loan		(916,017	)		(307,267	)
Balance, end of period	$	4,535,726		$	4,351,743

Outstanding balance		September 30, 2019			December 31, 2018
a) Long term debt – Harris Bank	$	-		$	150,895
b) Long term debt – Harris Bank		3,263,095			4,002,381
c) Long term debt – Harris Bank		1,100,000			-
d) Long term debt – Midland States Bank		158,849			177,794
e) Long term debt – Ford Credit		13,782			20,673
Long-term Debt	$	4,535,726		$	4,351,743
Less: current portion		(621,556	)		(771,359	)
	$	3,914,170		$	3,580,384

As of September 30, 2019, Company was in compliance with all loan covenants.