Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

DEBT

4. DEBT

Notes payable at December 31, 2017 consisted of the following:

	Principal		Unamortized Discount and Debt Issuance Costs
Senior Secured Notes, due June 30, 2018 (discount is based on imputed interest rate of 26%)	$	5,750,000	$	987,500

The debt issuance costs of $237,500 and the unamortized discount of $750,000 will be amortized into interest expense over the life of the loan. As the debt matures on June 30, 2018, the entire amount will be expensed as interest expense in 2018.

As of December 31, 2017 long-term debt consisted of the following:

	2017		2016
Secured mortgage payable to Bank for the purchase of the 100 Commerce Drive Building due in monthly installments of $11,951. The interest rate is 6.5% and the maturity date is November 1, 2026.	$	1,741,379	$	1,767,950
Note payable, former building owner interest payment only due in monthly installments of $1,604 interest at 5.5%. A balloon payment of $350 thousand plus unpaid interest due August 2018.		350,000		350,000
Note payable to the City of Loveland paid off in May 2017		-		50,000
		2,091,379		2,167,950
Less current portion		381,497		79,521
Long term debt	$	1,709,881	$	2,088,429

Aggregate maturities of long-term debt are as follows:

2019	33,607
2020	35,857
2021	38,259
2022	44,344
2023	43,791
Thereafter	1,514,023
	1,709,881