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Advanced Roofing, Inc. and Affiliates
<br />Notes to Consolidated Financial Statements
<br />Note 7. Long -Term Debt and Pledged Assets
<br />Long-term debt, and collateral pledged thereon, consists of the following as of December 31, 2015 and
<br />2014:
<br />2015
<br />2014
<br />Note payable to a financial institution, payable in monthly
<br />installments of principal and interest of $2,923, with interest
<br />at 6.35% through July 2025, collateralized by an airplane
<br />with no net book value and guaranteed by the Company's
<br />stockholders. $ 250,977 $
<br />269,289
<br />Note payable to a financial institution, payable in monthly
<br />installments of principal and interest ranging from $4,800
<br />to $5,600 through May 2018, at which time a balloon
<br />payment of $1,411,100 is due, with interest at the one-
<br />month LIBOR plus 2.75% (2.99% as of December 31, 2015),
<br />collateralized by land and building with a net book value of
<br />approximately $3,120,000 and guaranteed by the Company's
<br />stockholders. (a) 1,563,500
<br />1,624,900
<br />Note payable to a financial institution, payable in monthly
<br />installments of principal and interest of $13,618, with interest
<br />at 5.5% through July 2016, at which time a balloon payment
<br />of $1,685,843 is due, collateralized by land and building
<br />with a net book value of approximately $1,850,000 and
<br />guaranteed by the Company's stockholders. (a) 1,691,306
<br />1,758,373
<br />Note payable to a financial institution, payable in monthly
<br />installments of principal of $39,583, plus interest at one-month
<br />LIBOR plus 2.85% (3.09% as of December 31, 2015), through
<br />June 2019, collateralized by substantially all assets of
<br />the Company and guaranteed by the Company stockholders. (a) 1,686,482
<br />-
<br />5,192,265
<br />3,652,562
<br />Less current maturities 2,249,791
<br />146,944
<br />Notes payable, less current maturities $ 2,942,474 $
<br />3,505,618
<br />(a) This note requires maintenance of certain ratios of combined debt service and tangible net worth. The
<br />note payable also includes covenants restricting distributions and is cross -guaranteed with the line of
<br />credit (see Note 6).
<br />Aggregate future maturities on long-term debt as of December 31, 2015, are as follows:
<br />Years ending December 31:
<br />2016
<br />2017
<br />2018
<br />2019
<br />2020
<br />Thereafter
<br />14
<br />Amount
<br />$ 2,249,791
<br />562,233
<br />1,930,908
<br />285,355
<br />25,434
<br />138,544
<br />$ 5,192,265
<br />
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