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<br />NOTE 6. <br /> <br />ACCOUNTS PAYABLE AND ACCRUED LIABILITIES <br /> <br />Accounts payable and accrued liabilities at December 31, 2009 and 2008 consisted of <br />the following: <br /> <br />2009 <br /> <br />2008 <br /> <br />Accounts payable <br />Accrued liabilities <br />Retainage <br /> <br />$ 2,434,217 <br />297,231 <br />1,577,833 <br /> <br />$ 4,309,281 <br /> <br />$ 4,376,727 <br />392,021 <br />3,319,344 <br /> <br />$ 8,088,092 <br /> <br />NOTE 7. <br /> <br />LINE OF CREDIT <br /> <br />The Company has an unsecured line of credit with a bank providing for borrowings up <br />to $2,000,000, which expires on June 30, 2010. The credit line bears interest, payable <br />monthly, at the bank's prime rate plus 1 % per annum (effectively 4.25% at December <br />31, 2009 and 2008), is personally guaranteed by the members and is subject to certain <br />financial covenants. There were no outstanding borrowings on the line of credit <br />during the years ended December 31, 2009 and 2008. <br /> <br />NOTE 8. <br /> <br />MEMBERS' EQUITY <br /> <br />The Company has two members, each with 50% ownership. All distributions to <br />members are prorata. The members have limited personal liability for the obligations <br />and debts of the Company. The duration of the Company is through December 31, <br />2024. <br /> <br />NOTE 9. <br /> <br />RELATED PARTY TRANSACTIONS <br /> <br />Office Lease <br /> <br />The Company leases its office facility under an operating lease from an affiliated <br />entity, related to the Company by virtue of common ownership. The lease contains <br />yearly rent escalation clauses and expires on December 31, 2012. <br /> <br />Approximate future minimum annual lease payments under this office facility lease <br />are as follows: <br /> <br />2010 $ 185,000 <br />2011 191,000 <br />2012 197,000 <br /> $ 573,000 <br />10 <br />