Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
Secured Promissory Note
The Company is obligated on a short-term promissory note, as amended, in the principal amount of $300,000 as described above. A description of the material terms of the obligation, as amended, are described above and in Form 8-K filed on January 4, 2008. The Company is obligated to make monthly interest payments of $4,500 and to pay the principal on or before June 23, 2009.
Monthly interest = 4,500
annual interesy =54,000 (4,500 times 12)
loan amount = 300,000
interest rate = 18% ( 54,000 divided by 300,000)
I guess it is a good rate of return especially when banks pay now 1-2 %
Usually credit cards interest rate is around 18% so I guess it is OK in my book.
Taking into consideration the Polis family stood by us thru thick and thin.
The reason behind my post is to see where most of our expenses go to, other than rent and salary etc.
