Long-term Debt [Text Block] |
NOTE 10 – LONG-TERM LIABILITIES Loans payable to bank On October 31, 2013, the company acquired a loan from Sparkasse Bank of Germany in the amount of € 3,000,000 ($ 4,006,500, based upon exchange rate on October 31, 2013) in order to fund the purchase of ROB Cemtrex GmbH. $ 2,799,411 of the proceeds went to direct purchase of ROB Cemtrex GmbH and $ 1,207,089 funded beginning operations. This loan carries interest of 4.95% per annum and is payable on October 30, 2021. On May 28, 2014 the Company financed an upgrade of the information technology infrastructure for ROB Cemtrex GmbH. The purchase was fully financed through Sparkasse Bank of Germany for € 200,000 ($272,840 based upon the exchange rate on May 28, 2014). This loan carries interest of 4.50% and is payable over 4 years. On December15, 2015, the company acquired a loan from Fulton Bank in the amount of $ 5,250,000 in order to fund the purchase of Advanced Industrial Services, Inc. $ 5,000,000 of the proceeds went to direct purchase of AIS. This loan carries interest of LIBOR plus 2.25% per annum and is payable on December 15, 2022. On December15, 2015, the company acquired a loan from Fulton Bank in the amount of $ 800,000 in order to fund the operations of Advanced Industrial Services, Inc. $ 620,000 of the proceeds was drawn upon closing. This loan carries interest of LIBOR plus 2.00% per annum and is payable on December 15, 2020. Mortgage payable On March 1, 2014 the Company completed the purchase of the building that ROB Cemtrex GmbH occupies in Neulingen, Germany. The purchase was fully financed through Sparkasse Bank of Germany for € 4,000,000 ($ 5,500,400 based upon the exchange rate on March 1, 2014). This mortgage carries interest of 3.00% and is payable over 17 years. Notes payable On December 15, 2015 the Company issued notes payable to the sellers of Advanced Industrial Services, Inc. for $ 1,500,000 to fund the purchase of AIS. These notes carry interest of 6% and are payable over 3 years. Notes payable – related party Please see Note 11 – Related Party Transactions for details on notes payable to Ducon Technologies, Inc.
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