|
Note 7: Long — term Debt
Long - term debt consists of the following at September 30, 2011 and December 31, 2010:
|
|
|
2011
|
|
2010
|
|
|
Note payable, commercial bank
|
|
$
|
1,154,658
|
|
$
|
1,172,393
|
|
|
Note payable, asset acquisition
|
|
—
|
|
57,113
|
|
|
|
|
1,154,658
|
|
1,229,506
|
|
|
Less: Current portion
|
|
(25,068
|
)
|
(81,058
|
)
|
|
Total Long — term debt
|
|
$
|
1,129,590
|
|
$
|
1,148,448
|
|
The note payable to a commercial bank is paid in monthly installments of $9,159 including fixed interest of 7.3% through February 2017, at which time there is a balloon payment of $1,003,230. The payments to the commercial bank are related to the asset purchase agreement from GGLLC. This arrangement financed the purchase of the remaining intellectual property including patents, patent applications, trademarks, trademark applications, copyrights, know-how and trade secrets related to the casino gaming services including but not limited to games, side bets, inventions and ideas. The promissory note agreement with the bank remains in the name of GGLLC which is solely responsible for adhering to all of its terms, conditions and obligations.
In connection with the T&P Agreement executed on April 15, 2010, (see Note 18), the Sellers agreed to finance $126,000 over eighteen months at an interest rate of 6% per annum. Monthly principal and interest payments of $7,301 were required with the first payment paid upon closing. The obligation was paid in full during the quarter ended September 30, 2011.
Maturities of our long-term debt as of September 30, 2011 are as follows:
|
September 30,
|
|
|
|
|
2012
|
|
$
|
25,068
|
|
|
2013
|
|
27,228
|
|
|
2014
|
|
29,313
|
|
|
2015
|
|
31,558
|
|
|
2016
|
|
33,758
|
|
|
Thereafter
|
|
982,665
|
|
|
Total Long — term Debt
|
|
$
|
1,129,590
|
|