LONG TERM DEBT

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

LONG TERM DEBT

12. Long Term Debt

(a) In October 2020, NanoChem signed a loan for $1,980,947 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 three months ended March 31, 2022 was $15,130. The balance owing at March 31, 2023 was $nil (December 31, 2022 - $nil).

(b) 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 three months ended March 31, 2022 was $3,417. The balance owing at March 31, 2023 was $nil (December 31, 2022 - $nil).

(c) 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 three months ended March 31, 2023 was $4,501 (2022 - $4,677). The balance owing at March 31, 2023 was $412,660 (December 31, 2022 - $415,430).

(d) In June 2022, NanoChem signed a loan for $1,935,000 with Stock Yards with an interest rate of 4.90% 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 three months ended March 31, 2023 was $19,409 (2022 - $nil). The balance owing at March 31, 2023 was $1,478,361 (December 31, 2022 - $1,632,672).

(e) 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. Interest expense for the three months ended March 31, 2023 was $30,530 (2022 - $nil). The balance owing at March 31, 2023 was $2,793,963 (December 31, 2022 - $2,813,015).

(f) 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 three months ended March 31, 2023 was $3,452 (2022 - $nil). The balance owing at March 31, 2023 was $254,656 (December 31, 2022 - $256,162).

(g) In December 2022, NanoChem signed a three year loan for up to $2,000,000 with Stock Yards with an interest rate of 6.5%. Interest only payments are required for the first 18 months with interest and principal being paid in the last 18 months. The funds are being used to purchase new manufacturing equipment. Interest expense for the three months ended March 31, 2023 was $15,917 (2022 - $nil). The balance owing at March 31, 2023 was $1,036,798 (December 31, 2022 - $1,036,798).

As of March 31, 2023, Company was in compliance with all loan covenants.

Continuity	March 31, 2023			December 31, 2022
Balance, January 1	$	6,154,077		$	2,366,598
Plus: Proceeds from loans		-			3,230,798
Plus: Loan acquired with acquisition of ENP Peru		-			2,849,500
Less: Payments on loan		(177,639	)		(2,292,819	)
Balance, end of period	$	5,976,438		$	6,154,077

Outstanding balance	March 31, 2023			December 31, 2022
a) Long term debt – Midland States Bank	$	-		$	-
b) Long term debt – Midland States Bank		-			-
c) Long term debt – Stock Yards Bank & Trust		412,660			415,430
d) Long term debt – Stock Yards Bank & Trust		1,478,361			1,632,672
e) Long term debt – Stock Yards Bank & Trust		2,793,963			2,813,015
f) Long term debt – Stock Yards Bank & Trust		254,656			256,162
g) Long term debt – Stock Yards Bank & Trust		1,036,798			1,036,798
Long-term Debt	$	5,976,438		$	6,154,077
Less: current portion		(719,607	)		(717,612	)
	$	5,256,831		$	5,436,465