Long Term Debt

6 Months Ended

Jun. 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% (June 30, 2019 – 6.0%; 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 balance owing at June 30, 2019 was $50,299 (December 31, 2018 - $150,895). Interest expense for the six months ended June 30, 2019 was $3,294 (2018 - $7,983). The final payment will be made in September 2019.

The Company has committed to the following repayments:

2019 $ 50,299

(b) In October 2018, NanoChem Solutions Inc. signed a $4,100,000 term loan with Harris Bank with a rate of prime (June 30, 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 six months ended June 30, 2019 was $106,911 (2018 - nil). The balance owing at June 30, 2019 was $3,458,333 (December 31, 2018 - $4,002,381).

The Company has committed to the following repayments:

2019	$	292,857
2020	$	585,714
2021	$	585,714
2022	$	585,714
2023	$	585,714

(c) In April 2019, NanoChem Solutions Inc. signed a loan for up to $1,100,000 with Harris Bank with a rate of prime plus 0.5% (June 30, 2019 – 6.0%) for the purchase of new manufacturing equipment. An initial draw of $684,000 was made in April 2019. Interest expense for the six months ended June 30, 2019 was $6,840 (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. Loan proceeds were used to purchase production equipment. Interest expense for the six months ended June 30, 2019 was $4,508 (2018 - $9,224). The principal balance owing at June 30, 2019 is $165,159 (December 31, 2018 - $177,794).

The Company has committed to the following repayments:

2019	$	12,781
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 June 30, 2019 is $16,079 (December 31, 2018 - $20,673).

The Company has committed to the following repayments:

2019	$	4,594
2020	$	9,188
2021	$	2,297

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

Continuity	June 30, 2019			December 31, 2018
Balance, beginning of year	$	4,351,743			352,089
Plus: Proceeds from loans		684,000			4,100,000
Plus: Acquisition of ENP		-			206,921
Less: Payments on loan		(661,873	)		(307,267	)
Balance, end of period	$	4,373,870		$	4,351,743

Outstanding balance	June 30, 2019			December 31, 2018
a) Long term debt – Harris Bank	$	50,299		$	150,895
b) Long term debt – Harris Bank		3,458,333			4,002,381
c) Long term debt – Harris Bank		684,000
d) Long term debt – Midland States Bank		165,159			177,794
e) Long term debt – Ford Credit		16,079			20,673
Long-term Debt	$	4,373,870		$	4,351,743
Less: current portion		(671,341	)		(771,359	)
	$	3,702,529		$	3,580,384