Long Term Debt

3 Months Ended

Mar. 31, 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% (March 31, 2019 – 6.0%; December 31, 2018 – 5.75%) 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 March 31, 2019 was $100,597 (December 31, 2018 - $150,895). Interest expense for the three months ended March 31, 2019 was $2,009 (2018 - $4,186). The final payment will be made in September 2019.

The Company has committed to the following repayments:

2019 $ 100,597

(b) In October 2018, NanoChem Solutions Inc. signed a $4,100,000 term loan with Harris Bank with a rate of prime (March 31, 2019 – 5.5%; 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 three months ended March 31, 2019 was $54,958 (2018 - nil). The balance owing at March 31, 2018 was $3,855,952 (December 31, 2018 - $4,002,381).

The Company has committed to the following repayments:

2019	$	439,286
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 three months ended March 31, 2019 was $2,333 (2018 - $nil). The principal balance owing at March 31, 2019 is $171,556 (December 31, 2018 - $177,794).

The Company has committed to the following repayments:

2019	$	19,171
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 March 31, 2019 is $18,376 (December 31, 2018 - $20,673).

The Company has committed to the following repayments:

2019	$	6,891
2020	$	9,188
2021	$	2,297

As of March 31, 2019, Company was in compliance with all loan covenants.

Continuity	March 31, 2019			December 31, 2018
Balance, January 1	$	4,351,743			352,089
Plus: Proceeds from loans		-			4,100,000
Plus: Acquisition of ENP (see Note 3)		-			206,921
Less: Payments on loan		(205,262	)		(307,267	)
Balance, end of period	$	4,146,481		$	4,351,743

Outstanding balance	March 31, 2019			December 31, 2018
a) Long term debt – Harris Bank	$	100,597		$	150,895
b) Long term debt – Harris Bank		3,855,952			4,002,381
c) Long term debt – Midland States Bank		171,556			177,794
d) Long term debt – Ford Credit		18,376			20,673
Long-term Debt	$	4,146,481		$	4,351,743
Less: current portion		(721,370	)		(771,359	)
	$	3,425,111		$	3,580,384