Quarterly report pursuant to Section 13 or 15(d)

SHORT TERM LIABILITIES

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SHORT TERM LIABILITIES
6 Months Ended
Jun. 30, 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 paid the yearly premium in full and had no outstanding balance at June 30, 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 approximately $5,700 and carry an interest rate of 5%. Both of the notes have a maturity date of August 1, 2019. The promissory notes, including interest, had outstanding balances of approximately $147,000 and $181,000 at June 30, 2017 and December 31, 2016, respectively.

 

Expected future payments related to the promissory notes as of June 30, 2017, are approximately as follows:

 

For the year ending:

 

  December 31, 2017     $ 34,000  
  December 31, 2018       68,000  
  December 31, 2019       45,000  
        $ 147,000  

 

The Company paid interest expense related to the promissory notes for the three and six months ended June 30, 2017 in the amount of approximately $2,000 and $3,800, respectively. The Company paid interest expense related to the promissory notes for the three and six months ended June 30, 2016 in the amount of approximately $2,600 and $5,400, respectively. The Company had unpaid accrued interest in the amount of approximately $69,000 at June 30, 2017 and December 31, 2016 related to the promissory notes.