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Concentration of Risk - Major Customer
3 Months Ended
Mar. 31, 2019
PaymentOnCapitalLease  
Disclosure - Concentration of Risk - Major Customer

Note 12. Subsequent Events

 

On May 10, 2019, the Company closed on Advance 6 under the Loan with PDS with modified terms. The advance is evidenced by a Note in the principal amount of $581,700 and bears interest at an annual rate of 11%. Monthly payments of accrued interest only commence on June 10, 2019, and payments consisting of principal and interest of $15,878 commence on October 10, 2019. The Note matures on June 10, 2023 and includes CIP at $3.00 per day for each on-line day up to a maximum of 912 on-line days for each unit financed under the Note. CIP is due and payable monthly.

 

Effective April 15, 2019, PDS agreed to amend certain terms and conditions of the Loan Agreement in the Second Amendment to Master Loan Agreement, extending the advance period to 24 months after the initial advance date and changing the terms of the CIP in each Note. Each of the Notes executed prior to May 1, 2019 was amended extending the maturity dates from 36 to 48 months after each advance date, extending the CIP maturity date to 60 months after each advance date, and reducing the CIP from $3.50 to $3.00 per on-line day. The monthly payments under each Note were modified to reflect the extended maturity dates and the CIP days remaining were defined in each Note.