|
FERREIRA CONSTRUCTION COMPANY INC., AND SUBSIDIARY
<br />NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<br />Interest expense for the year ended December 31, 2020 totaled $5,096,523 (including amortization of
<br />deferred loan costs of $206,625), of which $2,210,076 is included in costs of revenues.
<br />Principal amounts at December 31, 2020 are due as follows:
<br />Twelve Months Ending
<br />December 31,
<br />Gross Debt
<br />Maturities
<br />2021
<br />$ 7,398,785
<br />2022
<br />7,099,474
<br />2023
<br />11,675,988
<br />2024
<br />10,644,480
<br />2025
<br />25,707,230
<br />Thereafter
<br />454,055
<br />$ 62,980,012
<br />Note 14 - Note Payable - Lines of Credit:
<br />Unamortized Debt Net Debt
<br />Issuance Cost
<br />Maturities
<br />$ 181,092
<br />$ 7,217,693
<br />181,092
<br />6,918,382
<br />181,092
<br />11,494,896
<br />176,735
<br />10,467,745
<br />97,924
<br />25,609,306
<br />-
<br />454,055
<br />$ 817,935
<br />$ 62,162,077
<br />The Company has a Bank line of credit under which they can borrow on a revolving basis up to
<br />$25,000,000 (with an additional $2,000,000 allowed for letters of credit) at any time through July 2023. The
<br />line of credit bears interest at the Wall Street Journal Prime Interest Rate (3.25% at December 31, 2020). There
<br />were no outstanding borrowings on the line of credit at December 31, 2020. The Company has pledged all
<br />assets of the Company as collateral for this line of credit. The sole shareholder and certain affiliates have
<br />guaranteed repayment of this line of credit. This line is cross -collateralized and cross -defaulted with the Main
<br />Street Loan held by the same Bank. These loans are also subject to the same debt covenants as the Main Street
<br />Loan.
<br />The Company has two equipment lines of credit totaling $8,500,000 with banks under which the
<br />Company can finance equipment purchases. These lines will be secured by the underlying equipment that is
<br />financed with each line of credit. The lines are available through June and September 2021 at which time the
<br />line of credit will be termed out on a fully amortized basis over 5 years at a fixed rate. There were no
<br />borrowings under these equipment lines of credit at December 31, 2020.
<br />Note 15 - Related Party Transactions:
<br />The Company has made non-interest bearing advances to various related parties in 2020 and prior
<br />years, which are included in due from related parties on the balance sheet (See Note 5). Accounts Receivable
<br />as of December 31, 2020 includes $4,654,778 due from related parties. Accounts payable as of December 31,
<br />2020 is net of $2,960,255 due from related parties. During the year ended December 31, 2020, the Company
<br />utilized a related party as a subcontractor, of which total costs of $1,103,197 are included in Costs of
<br />Construction.
<br />Note 16 - Concentrations:
<br />Customer Concentrations - One customer accounted for approximately 43% of revenues during the
<br />year ended December 31, 2020. One customer accounted for approximately 20% of accounts receivable at
<br />December 31, 2020.
<br />18
<br />
|