|
8. |
Bank Overdraft and Term Facilities |
Bank overdraft and term facilities at December 31, 2011 are associated with the South African Operations and consist of the following:
| |
|
Amount |
|
| Bank overdraft facilities (1)
|
|
$ |
255,607 |
|
| Term facility (2)
|
|
|
112,950 |
|
| Term facility (3)
|
|
|
225,371 |
|
| |
|
|
|
|
| Principal balance |
|
$ |
593,928 |
|
| Less: current portion |
|
|
330,607 |
|
| Long-Term Portion |
|
$ |
263,321 |
|
|
(1) |
Bank overdraft facilities are unsecured and have a total maximum facility of approximately $260,000. The interest rate as of December 31, 2011 is 11%. The facilities are reviewed annually and are payable on demand. |
|
(2) |
Term facility is payable on demand and the facility is secured by certain assets of one of the Company’s shareholders. |
|
(3) |
The monthly payments of principal and interests of the term facility total approximately $5,300 and have been made for the period from October 1, 2011 through December 2011. The interest rate at December 31, 2011 is 10.3%. |
|