Quarterly report pursuant to sections 13 or 15(d)

LONG-TERM DEBT

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LONG-TERM DEBT
3 Months Ended
Mar. 31, 2013
Debt Disclosure [Abstract]  
LONG-TERM DEBT

 

Long - term debt consists of the following at:

 

    March 31, 2013   December 31, 2012
Note payable – related party   $ 1,115,893     $ 1,122,915  
Notes payable, net of debt discount - PTG     18,380,263       19,488,879  
      19,496,156       20,611,794  
Less: Current portion     (2,390,183 )     (2,360,930 )
    $ 17,105,973     $ 18,250,864  

 

The note payable – related party requires monthly principal and interest payments of $9,159, at a fixed interest rate of 7.3% through February 2017, at which time there is a balloon payment due of $1,003,000. This note payable is a result of the asset purchase agreement with GGLLC and under the direction of GGLLC, the payments are to be made on GGLLC’s behalf directly to Bank of America. The note agreement remains in the name of GGLLC and we have no direct obligation to Bank of America. The note payable – related party is currently being litigated. Note 11 in Item 8. “Financial Statements and Supplementary Data” included in our annual report on Form 10-K for the year ended December 31, 2012

 

In October 2011, we closed an asset acquisition with Prime Table Games. Included within the structure of the $23 million acquisition was a $22.2 million component consisting of two promissory notes: 1) a note payable for $12.2 million, and 2) a note payable for £6.4 million ($10.0 million USD) note. The notes were recorded at fair value, net of a debt discount of $1,530,000.

 

Maturities of our long-term debt are as follows:

 

Maturities as of March 31,   Total
  2014     $ 2,390,183  
  2015       2,931,514  
  2016       3,569,803  
  2017       5,152,841  
  2018       4,377,258  
  Thereafter       2,291,609  
  Total long term debt     $ 20,713,208  
  Less: debt discount       (1,217,052 )
     Long-term debt, net of debt discount     $ 19,496,156