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<br />Metric Engineering, Inc. and Subsidiary
<br />Notes to Consolidated Financial Statements
<br />June 30, 2008
<br />
<br />NOT FOR PUBLIC INSPECTION / DO NOT COPY
<br />This financial statement is private and exempt from public
<br />inspection. or copying of public records pursuant to Florida
<br />Statutes 119.071 (I) (c).
<br />
<br />5. Property and Eauipment
<br />
<br />Property and equipment consists of the following:
<br />
<br />Furniture and fixtures
<br />Field equipment
<br />Auto and truck
<br />Leashold improvements
<br />
<br />Less accumulated depreciation
<br />
<br />$ 919,021
<br />1,451,310
<br />307,224
<br />629,278
<br />3,306,833
<br />(2,307,012)
<br />$ 999,821
<br />
<br />6. Lines of Credit
<br />
<br />The Company maintains a revolving line of credit that is due on demand and bears interest at the
<br />preferred rate announced by the lender, currently at 5.0%, for borrowings up to $1,000,000. The line is
<br />secured by contracts receivable. The Company had a balance of $620,000 due on the line of credit at
<br />June 30, 2008.
<br />
<br />On June 26, 2008 the company issued a promissory note to Victor M Benitez for amounts advanced from
<br />time to time up to a maximum outstanding principal balance of $800,000. The note has monthly interest
<br />only payments beginning July 15, 2008. Principal and all accrued interest due at maturity. Interest is
<br />accrued at the Metro Bank prime rate until July 15, 2009, after which time it may change. This note
<br />matures in June 10,2009. At June 30, 2008 the unpaid principal balance is $292,000.
<br />
<br />7. Notes Pavable
<br />
<br />Long-term obligations included notes payable to a local bank. The note to the local bank has monthly
<br />payments of principal, in the amount of $8,333, plus accrued interest began in March 2007. Principal
<br />payments approximate $100,000 per year through maturity. During 2008 interest accrued at an annual
<br />rate of 5.0%. This note matures in February 2012. At June 30, 2008 the unpaid principal balance
<br />amounted to $366,667.
<br />
<br />The Company entered into a stock purchase agreement with the shareholders of Dynamic to acquire
<br />100% of the outstanding shares of Dynamic for a purchase price of $400,000 payable in installments of
<br />$100,000 at closing and $100,000 installments due in May 2007, November 2007, and May 2008. At
<br />June 30,2008 amount due to the shareholders of Dynamic had been paid off.
<br />
<br />As of June 30, 2008, the company has installment agreements for equipment amounting to $34,735.
<br />Payments of principal and interest are due monthly. The agreements mature within 2008 through 2010.
<br />
<br />Commitments over the next five years are as follows:
<br />
<br />Due June 30, 2009
<br />Due June 30, 2010
<br />Due June 30,2011
<br />Due June 30, 2012
<br />Total
<br />Less: current maturities
<br />Long term portion
<br />
<br />100,000
<br />100,000
<br />100,000
<br />66.667
<br />366,667
<br />100.000
<br />$ 266.667
<br />
<br />9
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