LONG TERM DEBT

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

LONG TERM DEBT

11. LONG TERM DEBT

(a) 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 4.5%. Interest expense for the three months ended March 31, 2024 was $4,373 (2023 - $4,501). The balance owing at March 31, 2024 was $396,371 (December 31, 2023 - $399,269).

To secure repayment of any amounts borrowed under the mortgage, the Company granted Stock Yards a security interest in real property under the mortgage and all rents on said property.

(b) 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, 2024 was $11,801 (2023 - $19,409). The balance owing at March 31, 2024 was $842,828 (December 31, 2023 - $1,004,748).

(c) 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, 2024 was $30,003 (2023 - $30,530). The balance owing at March 31, 2024 was $2,717,683 (December 31, 2023 - $2,737,232).

(d) In June 2022, ENP Peru 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, 2024 was $3,409 (2023 - $3,452). The balance owing at March 31, 2024 was $248,658 (December 31, 2023 - $250,207).

(e) 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, 2024 was $23,525 (2022 - $15,917). The balance owing at March 31, 2024 was $1,533,004 (December 31, 2023 - $1,475,188).

(f) In June 2023, 317 Mendota signed a five year loan for up to $3,240,000 with Stock Yards to purchase a building and any necessary renovations. Interest only payments are required for the first 12 months with interest and principal being paid the remaining four years and a lump sum due in June 2028. Interest expense for the three months ended March 31, 2024 was $46,886 (2023 - $nil). The balance owing at March 31, 2024 was $2,248,292 (December 31, 2023 - $2,248,292).

As of March 31, 2024, Company was in compliance with all loan covenants. 

Continuity	March 31, 2024			December 31, 2023
Balance, January 1	$	8,114,936		$	6,154,077
Plus: Proceeds from loans		57,816			2,686,682
Less: Payments on loan		(185,916	)		(725,823	)
Balance, end of period	$	7,986,836		$	8,114,936

Outstanding balance	March 31, 2024			December 31, 2023
a) Long term debt – Stock Yards Bank & Trust	$	396,371		$	399,269
b) Long term debt – Stock Yards Bank & Trust		842,828			1,004,748
c) Long term debt – Stock Yards Bank & Trust		2,717,683			2,737,232
d) Long term debt – Stock Yards Bank & Trust		248,658			250,207
e) Long term debt – Stock Yards Bank & Trust		1,533,004			1,475,188
f) Long term debt – Stock Yards Bank & Trust		2,248,292			2,248,292
Long-term debt		7,986,836			8,114,936
Less: current portion		(1,665,440	)		(1,281,632	)
	$	6,321,396		$	6,833,304