Notes Payable

The following table presents the balances of our notes payables as of December 31 as indicated:



Branch Banking and Trust Company	Maturity Date	2017		2016		Interest Rates
Branch Banking and Trust Company	Maturity Date	2017		2016		2017		2016
Working Capital Loan	November 28, 2019	$	2,750,000	$	3,950,000	3.38	%	2.44	%
$22.6 Million Equipment Loan	March 9, 2021	$	19,540,000	$	—	3.25	%	—	%
$10.0 Million Equipment Loan	July 28, 2020	—		7,579,630		—	%	2.81	%
$17.0 Million Equipment Loan	March 6, 2020	—		9,601,000		—	%	2.50	%
$2.0 Million Equipment Loan	March 6, 2020	—		1,256,625		—	%	2.50	%
Total notes payable		22,290,000		22,387,255
Less unamortized debt issuance costs		38,646		54,027
Total notes payable, net		22,251,354		22,333,228
Less current portion of notes payable, net		6,099,787		6,101,855
Notes payable net, less current portion		$	16,151,567	$	16,231,373

As of December 31, 2017, the Company, and the Company’s wholly owned subsidiaries Southeast Power, Pineapple House of Brevard, Inc. (“Pineapple House”), Bayswater Development Corporation (“Bayswater”), Power Corporation of America (“PCA”) Precision Foundations, Inc. (“PFI”) and C and C Power Line, Inc. (“C&C”), collectively (the “Debtors,”) were parties to a Master Loan Agreement, dated June 9, 2017 (the “2017 Master Loan Agreement”), with Branch Banking and Trust Company (the “Bank”).

On June 9, 2017, the Company and the Debtors entered into the $22.6 Million Equipment Loan agreement. Borrowings of $15.6 million from the $22.6 Million Equipment Loan were used to pay in full all the outstanding Bank equipment loans, with the exception of the Working Capital Loan, plus accrued interest and loan closing costs.

As of December 31, 2017, the Company had a loan agreement and a series of related ancillary agreements with the Bank providing for a revolving line of credit loan for a maximum principal amount of $18.0 million, to be used as a “Working Capital Loan.” As of December 31, 2017 and December 31, 2016, borrowings under the Working Capital Loan were $2.8 million and $4.0 million, respectively. As a credit guaranty to the Bank, the Company is contingently liable for the guaranty of a subsidiary obligation under an irrevocable letter of credit related to workers’ compensation. As of both December 31, 2017 and December 31, 2016, the Company had $420,000 for this irrevocable letter of credit related to workers’ compensation.

As of December 31, 2017, the Debtors had a loan agreement with the Bank for the $22.6 Million Equipment Loan, which is guaranteed by the Debtors and include the grant of a continuing security interest in all now owned and after acquired and wherever located personal property of the Debtors.

The Working Capital Loan and the $22.6 Million Equipment Loan bear interest at a rate per annum equal to one month LIBOR (as defined in the documentation related to each loan) plus 1.80%, which will be adjusted monthly and subject to a maximum rate of 24.00%.

The Company’s debt arrangements contain various financial and other covenants including, but not limited to: minimum tangible net worth, maximum debt to tangible net worth ratio and fixed charge coverage ratio. Other loan covenants prohibit, among other things, a change in legal form of the Company, and entering into a merger or consolidation. The loans also have cross-default provisions whereby any default under any loans of the Company (or its subsidiaries) with the Bank, will constitute a default under all of the other loans of the Company (and its subsidiaries) with the Bank.

The schedule of payments of the notes payable as of December 31, 2017 is as follows:



2018	$	6,120,000
2019	8,870,000
2020	6,120,000
2021	1,180,000
Total payments of debt	$	22,290,000