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Securitized Loan
3 Months Ended
Mar. 31, 2014
Securitized Loans [Abstract]  
Securitized Loans Disclosure [Text Block]

13.  Securitized Loan

 

Effective May 16, 2013 MAB-Z entered into a one year securitized financing short term agreement with CBZ Bank Limited in the amount of $420,000.  As security under this agreement Kinsey pledged two Bell HD2045 Hydraulic Excavators appraised at a combined value of $739,000.  The loan originally was to be paid in monthly installments commencing in December 2013 in the amount of $35,000 plus interest expiring on June 30, 2014 upon which time all monies were due and payable in full.  The interest rate on the loan is 15% per year. Upon funding of this loan a 3% establishment fee was charged and deducted from the proceeds.  The Company may in the future obtain funding through securitizations and other attempts to raise capital until cash flow operations are self-sustaining in the support of continuing operations.

 

This agreement was subsequently modified in January 2014 to adjust the payment schedule whereby payments of $35,000 per month plus full to date interest is due and payable commencing February 2014 and will continue each month there after including interest with the last payment due January 31, 2015.  At March 31, 2014 this loan had a balance of $385,000.

 

As of March 31, 2014, the entire amount is reflected in current liabilities. The Company has expensed $52,138 in interest expense on this loan including $16,613 in the three months ended March 31, 2014. The Company paid $57,613 in interest during the three months ended March 31, 2014, leaving a prepaid interest of $5,475 which is included in prepaid expenses.