Note Payable

9 Months Ended

Sep. 30, 2014

NOTE 3. NOTE PAYABLE

The Company is obligated under a promissory note payable to an LLC. The note accrues interest at a 10% annual rate until repaid on or before its maturity date of August 18, 2020.

The net promissory note obligation was as follows as of:

	September 30, 2014			December 31, 2013
Face amount of note	$	2,568,900		$	2,568,900
Accrued interest		1,060,450			867,783
Less unamortized loan discount		(318,419	)		(359,952	)
	$	3,310,931		$	3,076,731

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

SMOKY MARKET FOODS INC 10-Q