Quarterly report pursuant to Section 13 or 15(d)

SHORT TERM LIABILITIES

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SHORT TERM LIABILITIES
3 Months Ended
Mar. 31, 2017
Debt Disclosure [Abstract]  
SHORT TERM LIABILITIES

Finance Agreement

 

The Company entered into a commercial insurance premium finance and security agreement in December 2016. The agreement finances the Company’s annual D&O insurance premium. Payments are due in quarterly installments of approximately $23,000 and carry an annual percentage interest rate of 4.9%.

 

The Company had an outstanding balance of approximately $21,000 at March 31, 2017 related to the agreement.

 

Promissory Notes

 

In conjunction with the consummation of the Streamline acquisition on March 25, 2015, the Company assumed two promissory notes for approximately $135,000 and $125,000 to the Bank of North Dakota New Venture Capital Program and North Dakota Development Fund, both outside non-related parties. Payments on both of the notes are due in aggregate monthly installments of $5,661 and carry an interest rate of 5%. Both of the notes have a maturity date of August 1, 2019. The promissory notes, excluding interest, had outstanding balances of approximately $149,000 and $165,000 at March 31, 2017 and December 31, 2016, respectively. The promissory notes, including interest, had outstanding balances of approximately $164,000 and $181,000 at March 31, 2017 and December 31, 2016, respectively.

 

Expected future payments, including interest, related to the promissory notes as of March 31, 2017, are approximately as follows:

 

For the year ending:

 

December 31, 2017     51,000  
December 31, 2018     68,000  
December 31, 2019     45,000  
    $ 164,000  

 

The Company paid interest expense related to the promissory notes for the three months ended March 31, 2017 and 2016 in the amount of approximately $2,300 and $2,800, respectively. The Company had unpaid accrued interest in the amount of approximately $69,000 at March 31, 2017 and December 31, 2016 related to the promissory notes.