9. LONG-TERM DEBT OBLIGATIONS 

Long-term debt consists of debt on vehicles and equipment, which serves as the collateral.

Interest rates on the equipment financings range from 5.71% to 7.2% for 2024 and mature between 2025 through 2029.

As described in Note 2, in August 2024, the Collins Building debt was cancelled in exchange for the property and substantially all the equipment acquired in the original transaction. The Collins Building debt consisted of a five-year secured promissory note with an original principal amount of $2,000,000, bearing interest at 7.0% per annum (the “First Promissory Note”), and a two-year secured promissory note with an original principal amount of $2,035,250, bearing interest at 8.25% per annum (the “Second Promissory Note”, and, together with the First Promissory Note, the “Collins Promissory Notes”). The First Promissory Note was secured by the acquired real property and quarry infrastructure and the Second Promissory Note was secured by the acquired equipment. At December 31, 2023, the First Promissory Note had an outstanding balance of $1,887,395 and the Second Promissory Note had an outstanding balance of $1,798,633.

In November 2024, certain equipment items no longer required by the Company were surrendered to the financing company which held liens on the equipment in exchange for a release of debt. The result of this transaction was a reduction of the net equipment values on the balance sheet and a reduction in the long-term debt of $1,012,375. The difference in the equipment value and the debt is captured in the statement of operations and cash flow in the line item for the loss on sale of fixed assets.

A summary of payments due under the long-term debt as of December 31, 2024 by year is as follows:

SCHEDULE OF MATURITIES OF LONG TERM DEBT