Laserfiche WebLink
<br />SBLM ARCHITECTS, P.C. <br />(AN S CORPORATION) <br /> <br />NOTES TO FINANCIAL STATEMENT <br /> <br />DECEMBER 31, 2009 <br /> <br />NOTE 2 - FIXED ASSETS (Continued) <br /> <br />The Company's property under capital leases which is included in fixed assets at December <br />31, 2009 consists of office equipment at a cost of $194,688 less accumulated depreciation of <br />$137,784. <br /> <br />Depreciation expense for the year ended December 31,2009 totaled $194,365. <br /> <br />NOTE 3 - NOTE PAYABLE TO BANK <br /> <br />In June 2005, the Company entered into a line of credit for $250,000, which has been <br />amended to increase the line to $3,000,000. The line is secured by substantially all assets of <br />the Company. Certain officers of the Company have personally guaranteed the loan. The <br />line is due on October 24, 2010 and borrowings under the line of credit bear interest at the <br />bank's Iibor rate. At December 31,2009, borrowings under the line totaled $424,983. <br /> <br />As of December 31,2009, the Company is not in compliance with the debt covenants. <br /> <br />NOTE 4 - RELATED PARTY TRANSACTIONS <br /> <br />Note Receivable <br /> <br />In 2008, the Company entered into a promissory note agreement whereby the Company lent <br />$205,000 to DB Right, LLC ("DB Right"). The promissory note is due July 15, 2009 and <br />incurs interest at 5% per annum. The 2008 agreement was superseded by the December <br />2009 Amendment, which expanded the promissory note agreement to lend up to $338,000 to <br />DB Right, LLC. 1he interest rate on the new agreement is prime less 1% and is due <br />December 31, 2019. At December 31, 2009 the balance owed to the Company was <br />$333,617. The Company shareholders own DB Right, with the same ownership as they have <br />for the Company. <br />