Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt and Other Short-Term Borrowings

v3.23.1
Long-Term Debt and Other Short-Term Borrowings
3 Months Ended
Mar. 31, 2023
Long-Term Debt and Other Short-Term Borrowings  
Long-Term Debt and Other Short-Term Borrowings

Note 11. Long-Term Debt and Other Short-Term Borrowings

 

Long term debt and other short-term borrowings consisted of the following at March 31, 2023 and December 31, 2022:

 

 

 

March 31,

2023

 

 

December 31,

2022

 

 

 

 

 

 

 

 

Long-term debt:

 

 

 

 

 

 

 

 

 

 

 

 

 

On July 24, 2019, the Company through its wholly owned subsidiary, Mid-Con Petroleum, LLC, executed a promissory note payable to Cornerstone Bank in the amount of $2,241,758, bearing interest at 6%, payable interest only through July 24, 2021, then on August 24, 2021, payable in monthly installments of principal and interest of $43,438, with a final payment due on a maturity date of July 24, 2025. The note is secured by a first mortgage on all of the assets of Mid-Con Petroleum, LLC and a guarantee of payment by Viking. On March 10, 2023, the promissory note was amended to include a conversion feature and to include Viking as an additional obligor. See Note 13. The balance shown is net of unamortized discount of $1,430,320 at March 31, 2023 and $12,224 at December 31, 2022.

 

 

243,305

 

 

 

1,766,422

 

 

 

 

 

 

 

 

 

 

On July 24, 2019, the Company through its wholly owned subsidiary, Mid-Con Drilling, LLC, executed a promissory note payable to Cornerstone Bank in the amount of $1,109,341, bearing interest at 6%, payable interest only through July 24, 2021, then on August 24, 2021, payable in monthly installments of principal and interest of $21,495, with a final payment due on a maturity date of July 24, 2025. The note is secured by a first mortgage on all of the assets of Mid-Con Drilling, LLC and a guarantee of payment by Viking. On March 10, 2023, the promissory note was amended to include a conversion feature and to include Viking as an additional obligor. See Note 13. The balance shown is net of unamortized discount of $661,816 at March 31, 2023 and $12,190 at December 31, 2022.

 

 

111,182

 

 

 

813,571

 

 

On July 1, 2020, the Company received a loan of $150,000 from the U.S. Small Business Administration. The loan bears interest at 3.75% and matures on July 28, 2050. The loan is payable in monthly installments of $731 with the remaining principal and accrued interest due at maturity. Installment payments were originally due to start 12 months from the date of the note but the date was extended to January 2023. Accrued interest from the original installment due date to January 2023 was capitalized to the loan principal balance.

 

 

164,010

 

 

 

163,623

 

 

 

 

 

 

 

 

 

 

Total long-term debt

 

 

518,497

 

 

 

2,743,616

 

Less current portion and debt discount

 

 

(96,926 )

 

 

(637,335 )

 

 

$ 421,571

 

 

$ 2,106,281

 

Principal maturities of long-term debt for the next five years and thereafter are as follows:

 

Twelve-month period ended March 31,

 

 

 

 

 

 

 

 

Principal

 

 

Unamortized Discount

 

 

Net

 

2024

 

$

652,909

 

 

$

(555,983

)

 

$

96,926

 

2025

 

 

693,208

 

 

 

(590,355

)

 

 

102,853

 

2026

 

 

1,109,052

 

 

 

(945,797

)

 

 

163,255

 

2027

 

 

3,069

 

 

 

-

 

 

 

3,069

 

2028

 

 

3,186

 

 

 

-

 

 

 

3,186

 

Thereafter

 

 

149,208

 

 

 

-

 

 

 

149,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,610,632

 

 

$

(2,092,135

)

 

$

518,497

 

 

Bank Credit Facility

 

Simson-Maxwell has an operating credit facility with TD Bank, secured by accounts receivable and inventory, bearing interest at prime plus 2.25% on Canadian funds up to CAD $5,000,000 and the bank’s US dollar base rate plus 2.25% on US funds, plus a monthly administration fee of CAD 500. The balance outstanding under this credit facility is CAD $4,638,917 ($3,429,485) and  CAD $4,139,785 ($3,111,350) as of March 31, 2023 and December 31, 2022, respectively.