LONG-TERM DEBT OBLIGATIONS |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||
| LONG-TERM DEBT OBLIGATIONS | 12. LONG-TERM DEBT OBLIGATIONS
Long-term debt consists of the bank term debt which was consolidated from existing lines of credit in September 2025. The bank term loan, referenced above in Note 11, has a principal balance of $1,800,000 with a maturity date of June 30, 2030. The bank term loan bears interest at the fixed rate of seven and three-quarters per cent (7.75%). Quarterly interest only payments are required through December 2025. Beginning in 2026, quarterly principal and interest payments are required in March, June, September and December.
As described in Note 2, in August 2024, the Collins Building Debt (defined below) was cancelled in exchange for transferring back to the original owner the property and substantially all of the equipment acquired in the original acquisition transaction. The Collins Building Debt consisted of a 5-year secured promissory note in the principal amount of $2,000,000, bearing interest at 7.0% per annum (the “First Promissory Note”), and a two-year secured promissory note in the 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 Building Debt”). 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.
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 the related debt. The result of this transaction was a reduction of the net equipment values on the balance sheet and a reduction in long-term debt of $1,012,375. The difference in the equipment value and the equipment debt is captured in the consolidated statement of operations and statement of cash flows for the year ended December 31, 2024.
In August 2025, additional equipment no longer needed by the Company was surrendered to the financing company which held liens on the equipment resulting in a reduction of the net equipment values on the Company’s balance sheet and a reduction in long-term debt of $914,803. The remaining debt in excess of the value of the equipment is carried on the Company’s balance sheet as an accrued expense.
A summary of payments due under the Company’s long-term debt as of December 31, 2025 by year is as follows:
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