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Securitized Loan
9 Months Ended
Sep. 30, 2014
Securitized Loans [Abstract]  
Securitized Loans Disclosure [Text Block]

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.

 

Subsequent to the restructuring, the account was over-drafted due to withdrawal of timely interest and principal payments as well as miscellaneous bank fees. The overdraft position as provided for in the agreement carries the banks minimum lending rate plus a 12% margin agreed to on the original loan upon acceptance. Additionally, as provided in our agreement this overdraft position not being previously agreed and authorized carries a penalty interest rate of an additional 10%. Additionally the bank reserves the right to increase or change the minimum rate during the term of this line at its sole discretion. Currently the bank has assigned an additional premium of 3%. This rate is a floating rate and is assigned at the discretion of the bank. The Company is currently trying to renegotiate the terms of this loan.

 

As of September 30, 2014, the entire amount is reflected in current liabilities. The Company has expensed $84,359 for interest on this loan and the associated overdraft line of credit including $18,932 and $50,888 in the three and nine months ended September 30, 2014, respectively. The interest charged on the loan in the amount of $84,359 consists of $70,204 of standard loan interest and $14,155 of overdraft interest. The Company paid $71,417 in interest during the nine months ended September 30, 2014, leaving an interest payable balance of $12,942.

 

At September 30, 2014 this loan had a balance of $140,000 and the accompanying overdraft line of credit had a balance of $239,975.