LONG-TERM NOTES PAYABLE |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LONG-TERM NOTES PAYABLE |
8. LONG-TERM NOTES PAYABLE
On
January 11, 2008, Cellectar entered into a loan agreement with a
bank to borrow up to $1,200,000. The borrowing, evidenced by
a note (the “Bank Note”), bore interest at a rate of
7.01% per annum, could be prepaid without penalty and was payable
in 48 monthly principal and interest payments of $20,520 with a
balloon payment of any remaining unpaid principal and interest on
March 28, 2012. In the event of default of payment, Cellectar
would be required to pay a late charge equal to 5% of the
delinquent payment and the interest rate on the unpaid principal
would be increased by 3%. The Bank Note was collateralized by
substantially all assets of Cellectar and a deposit account in the
amount of $500,000. The cash collateral is classified as
restricted cash in the accompanying balance sheet. As of
December 31, 2010 and 2009, $470,941 and $675,743 are classified as
a long-term note payable in the accompanying balance sheet,
respectively. On April 8, 2011, immediately prior to the
Acquisition, Cellectar paid approximately $627,000 in full
settlement of the Bank Note. The payment was made in order to avoid
an event of default that would have occurred as a result of the
change of control that occurred at the time of the
Acquisition.
On
September 15, 2010, Cellectar entered into certain loan agreements
with the Wisconsin Department of Commerce (“WDOC
Notes”) to borrow a total of $450,000. The WDOC Notes
bear interest at 2% per annum beginning on the date of disbursement
and allow for the deferral of interest and principal payments until
April 30, 2015. In the event of default of payment, interest
on the delinquent payment is payable at a rate equal to 12% per
annum. Monthly payments of $20,665 for principal and interest
shall commence on May 1, 2015 and continue for 23 equal
installments with the final installment of any remaining unpaid
principal and interest due on April 1, 2017. As of December
31, 2010, $450,000 is classified as a long-term note payable in the
accompanying balance sheet.
Long-term
notes payable consists of the following as of December
31:
As
of December 31, 2010, long-term notes payable matures as
follows:
During
the nine-months ended September 30, 2011, payments of $675,743 were
made in connection with the Bank Note including a payment of
approximately $627,000 in full settlement of the Bank Note made
immediately prior to the Acquisition in order to avoid an event of
default that would have occurred as a result of the change in
control that occurred at the time of the Acquisition.
As
of September 30, 2011, the outstanding principal on the WDOC Notes
of $450,000 is classified as long-term debt outstanding in the
accompanying balance sheet.
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