LONG TERM DEBT

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

LONG TERM DEBT

12. LONG TERM DEBT

(a) In January 2018, ENP Investments signed a $200,000 promissory note with Midland 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 and interest for the six months ended June 30, 2021 was $2,788. In May 2021, ENP Investments paid the loan in full with cash on hand.

(b) In April 2020, NanoChem received a two year loan of $322,000 through the Paycheck Protection Program with a rate of 1%. In March, 2021, the loan was forgiven by the SBA and has been recorded as Other Income in the condensed interim consolidated statements of operations and comprehensive income for the six month period ended June 30, 2021.

(c) In April 2020, ENP Investments received a two year loan of $215,960 through the Paycheck Protection Program with a rate of 1%. In March, 2021, the loan was forgiven by the SBA and has been recorded as Other Income in the condensed interim consolidated statements of operations and comprehensive income for the six month period ended June 30, 2021.

(d) In October 2020, NanoChem signed a $1,980,947 term loan with Midland with a rate of 3.85% to be repaid over 5 years with equal monthly payments including interest. The money was used to retire the debt at Harris related to the loan to purchase a 65% interest in ENP Investments. In June 2022, the loan was paid in full with funds from Stock Yards. Interest expense for the six ended June 30, 2022 was $30,334 (2021 - $36,798). The balance owing at June 30, 2022 was $nil (December 31, 2021 - $1,554,044).

(e) In October 2020, NanoChem signed a loan for $894,253 with Midland with an interest rate 3.85% to be repaid over two years with equal monthly payments including interest. The funds were used to replace the loan at Harris for the purchase of new manufacturing equipment. In June 2022, the loan was paid in full with funds from Stock Yards. Interest expense for the six months ended June 30, 2022 was $5,816 (2021 - $14,670). The balance owing at June 30, 2022 was $nil (December 31, 2021 - $381,674).

(f) In January 2020, ENP Mendota refinanced its mortgage and signed a loan for $450,000 with Stock Yards to be repaid over 10 years with monthly installments plus interest. Interest for the first five years is at 4.35% and it will be adjusted for the last five years to the Cincinnati Federal Home Bank Loan 5 year fixed index plus 2.5%. Interest expense for the six months ended June 30, 2022 was $4,635 (2021 - $9,512). The balance owing at June 30, 2022 is $420,733 (December 31, 2021 - $430,880).

(g) In June 2022, NanoChem signed a loan for $1,935,000 with Stock Yards with a variable interest rate of 2.25% over index to be repaid over three years with equal monthly payments including interest. The funds were used to replace the loans at Midland for the purchase of the 65% interest in ENP Investments and the new manufacturing equipment. Interest expense for the six months ended June 30, 2022 was $nil (2021 - $nil). The balance owing at June 30, 2022 is $1,935,000 (December 31, 2021 - $nil).

(h) In January 2020 ENP Peru signed a $3,000,000 loan with an interest rate 4.35% to be repaid over ten years with equal monthly payments including interest. Upon the purchase of the remainder of ENP Peru in June 2022, the Company assumed the first mortgage at Stock Yards with a balance of $2,849,500. The balance owing at June 30, 2022 was $2,849,500 (December 31, 2021 - $nil).

(i) In June 2022, ENP Peru Investments obtained a second mortgage for $259,000 with Stock Yards to be repaid over 10 years with monthly installments plus interest with an interest rate of 5.4%. Interest expense for the six months ended June 30, 2022 was $nil (2021 - $nil). The balance owing at June 30, 2022 was $259,000 (December 31, 2021 - $nil).

As of June 30, 2022, Company was in compliance with all loan covenants.

Continuity	June 30, 2022			December 31, 2021
Balance, January 1	$	2,366,598		$	3,847,638
Plus: Proceeds from loans		2,194,000			-
Plus: Loan acquired with acquisition of ENP Peru		2,849,500			-
Less: Forgiveness on PPP loans		-			(537,960	)
Less: Payments on loan		(1,945,865	)		(943,080	)
Balance, end of period	$	5,464,233		$	2,366,598

Outstanding balance at December 31,	June 30, 2022			December 31, 2021
a) Long term debt – Midland States Bank	$	-		$	-
b) Long term debt – PPP		-			-
c) Long term debt – PPP		-			-
d) Long term debt – Midland States Bank		-			1,554,044
e) Long term debt – Midland States Bank		-			381,674
f) Long term debt – Stock Yards Bank & Trust		420,733			430,880
g) Long term debt – Stock Yards Bank & Trust		1,935,000			-
h) Long term debt – Stock Yards Bank & Trust		2,849,500			-
i) Long term debt – Stock Yards Bank & Trust		259,000			-
Long-term debt		5,464,233			2,366,598
Less: current portion		(700,278	)		(793,574	)
	$	4,763,955		$	1,573,024