Long Term Debt

3 Months Ended

Mar. 31, 2020

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%) 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 final payment was made in September 2019. Interest expense for the three months ended March 31, 2019 was $2,009.

(b) In October 2018, NanoChem Solutions Inc. signed a $4,100,000 term loan with Harris Bank with a rate of prime (March 31, 2020 – 3.25%; December 31, 2019 – 4.75%) 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, 2020 was $34,458 (2019 - $54,958). The balance owing at March 31, 2020 was $2,970,238 (December 31, 2019 - $3,116,667).

The Company has committed to the following repayments:

2020	$	739,285
2021	$	585,714
2022	$	585,714
2023	$	585,714
2024	$	473,811

(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% (March 31, 2020 – 3.75%; December 31, 2019 – 5.25%) for the purchase of new manufacturing equipment. The Company paid interest only payments until February 2020, when equally monthly installments of the principal and interest are due until January 2024. Interest expense for the three months ended March 31, 2020 was $14,232 (2019 – $nil). The balance owing at March 31, 2020 was $1,054,166 (December 31, 2019 - $1,100,000)

The Company has committed to the following repayments:

2020	$	206,249
2021	$	275,000
2022	$	275,000
2023	$	275,000
2024	$	22,917

(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 three months ended March 31, 2020 was $2,104 (2019 - $2,333). The principal balance owing at March 31, 2020 is $145,774 (December 31, 2019 - $152,241).

The Company has committed to the following repayments:

2020	$	19,171
2021	$	25,562
2022	$	25,562
2023	$	25,562
2024	$	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 March 31, 2020 is $9,188 (December 31, 2019 - $11,485).

The Company has committed to the following repayments:

2020	$	6,891
2021	$	2,297

As of March 31, 2020, Company was in compliance with all loan covenants.

Continuity	March 31, 2020			December 31, 2019
Balance, January 1	$	4,380,393			4,351,743
Plus: Proceeds from loans		-			1,100,000
Less: Payments on loan		(201,027	)		(1,071,350	)
Balance, end of period	$	4,179,366		$	4,380,393

Outstanding balance	March 31, 2020			December 31, 2019
a) Long term debt – Harris Bank	$	-		$	-
b) Long term debt – Harris Bank		2,970,238			3,116,667
b) Long term debt – Harris Bank		1,054,166			1,100,000
c) Long term debt – Midland States Bank		145,774			152,241
d) Long term debt – Ford Credit		9,188			11,485
Long-term Debt	$	4,179,366		$	4,380,393
Less: current portion		(1,197,186	)		(1,196,722	)
	$	2,982,180		$	3,183,671