Long Term Debt

12 Months Ended

Dec. 31, 2018

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% (December 31, 2018 – 5.75%; December 31, 2017 – 5%) to be repaid over 5 years with equal monthly installments plus interest. This money was used to retire the previously issued and outstanding debt obligations. The balance owing at December 31, 2018 was $150,895 (December 31, 2017 - $352,089). Interest expense for the year ended December 31, 2018 was $13,123 (December 31, 2017 - $44,125). The final payment will be made in September 2019.

The Company has committed to the following repayments:

2019 $ 150,895

(b) In October 2018, NanoChem Solutions Inc. signed a $4,100,000 term loan with Harris Bank with a rate of prime (December 31, 2018 – 5.5%; December 31, 2017 - nil) 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. The balance owing at December 31, 2018 was $4,002,381.

The Company has committed to the following repayments:

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

(c) 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 year ended December 31, 2018 was $2,415 (December 31, 2017 - $nil). The principal balance owing at December 31, 2018 is $177,794.

The Company has committed to the following repayments:

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

(d) 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 December 31, 2018 is $20,673 (December 31, 2017 - $29,861).

The Company has committed to the following repayments:

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

As of December 31, 2018, Company was in compliance with all loan covenants.

Continuity	2018			2017
Balance, January 1	$	352,089			553,282
Plus: Proceeds from loans		4,100,000			-
Plus: Acquisition of ENP (see Note 3)		206,921
Less: Payments on loan		(307,267	)		(201,193	)
Balance, December 31	$	4,351,743		$	352,089

Outstanding balance at December 31,	2018			2017
a) Long term debt – Harris Bank	$	150,895		$	352,089
b) Long term debt – Harris Bank		4,002,381			-
c) Long term debt – Midland States Bank		177,794			-
d) Long term debt – Ford Credit		20,673			-
Long-term Debt	$	4,351,743		$	352,089
Less: current portion		(771,359	)		(201,194	)
	$	3,580,384		$	150,895