Quarterly report pursuant to Section 13 or 15(d)

Notes and Other Obligations

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Notes and Other Obligations
3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Notes and Other Obligations
Note 4. Notes and Other Obligations:

Notes payable and other obligations consisted of the following:

   
March 31,
2016
(Unaudited)
   
December 31,
2015
 
         
Mortgage notes
 
$
-
   
$
1,997,701
 
Other short-term installment obligations
   
57,152
     
142,328
 
                 
     
57,152
     
2,140,029
 
Less current portion
   
57,152
     
301,250
 
                 
   
$
-
   
$
1,838,779
 

Mortgage notes:

Prior to the February 2016 sale of the corporate headquarters, the Company had a permanent mortgage on its land and building that was refinanced in May 2013. The mortgage was held by a commercial bank and included a portion guaranteed by the U. S. Small Business Administration (“SBA”). The loan was collateralized by the real property and the SBA portion was also personally guaranteed by a former officer of the Company. The commercial bank loan terms included a payment schedule based on a fifteen year amortization, with a balloon maturity at five years. The commercial bank portion had an interest rate fixed at 3.95%, and the SBA portion bore interest at the rate of 5.86%. The commercial bank portion of the loan required total monthly payments of approximately $11,700, which included approximately $4,500 per month in interest. The SBA portion of the loan required total monthly payments of approximately $9,000 through July 2023, which included approximately $3,500 per month in interest and fees in 2016.
On February 25, 2016, the Company completed the sale of its corporate headquarters, land and building, and also paid off its mortgage obligations.  See Note 2.
Future maturities:

The Company’s total debt obligations require minimum annual principal payments of approximately $57,000 for the remainder of 2016, with nothing due beyond that date.