H. Subsequent Events
The Company has evaluated subsequent events from September 30, 2011 through the date the original financial statements were issued and determined that there are the following events to disclose.
On July 27, 2011, the Company entered into two-year loan agreement with the Industrial Development Board of the City of Auburn, Alabama. The $200,000 loan will be used to purchase new equipment. The new equipment will be used as collateral for the loan agreement. The loan carries a 3.25% interest rate payable in quarterly payments. Two principle payments of $100,000 are due on July 27, 2012 and 2013.
On July 27, 2011, the Company and Industrial Development Board of the City of Auburn, Alabama renegotiated its operating lease for the Auburn, Alabama facility. The term of the lease is for one hundred and twenty (120) months with a starting date of November 1, 2011. Total operating lease payments for the remainder of 2011 are $21,064. Lease payments for 2012 are $138,784. The lease payment, starting in November 2013 will be recalculated based on the City of Auburn’s cost of debt service.