Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

v2.4.0.8
NOTES PAYABLE
 6 Months Ended
Jun. 30, 2014
Notes to Financial Statements  
NOTES PAYABLE

Notes payable consisted of the following at:

 

  June 30, 2014   December 31, 2013
Note payable – related party $ 1,080,418     $ 1,095,181  
Notes payable, net of debt discount - PTG   16,402,876       17,480,676  
    17,483,294       18,575,857  
Less: Current portion   (3,289,275 )     (2,929,918 )
   Notes payable $ 14,194,019     $ 15,645,939  

 

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. The note payable between GGLLC and Bank of America was the subject of litigation and was settled in February 2014. See Note 12 for further details.

 

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 GBP ($10.0 million USD) note. The notes were recorded at fair value, net of a debt discount of $1,530,000. See Note 17 for further details.

 

Maturities of our notes payable are as follows:

 

Maturities as of June 30,   Total
  2015     $ 3,135,743  
  2016       4,133,834  
  2017       5,453,591  
  2018       4,720,001  
  2019       996,387  
  Total notes payable     $ 18,439,556  
  Less: debt discount       (956,262 )
     Notes payable, net of debt discount     $ 17,483,294