Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Notes Payable

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Note 8 - Notes Payable
9 Months Ended
May 31, 2017
Notes  
Note 8 - Notes Payable

NOTE 8 – NOTES PAYABLE

 

As partial consideration for the acquisition of CMP, the Company issued the sellers unsecured promissory notes totaling $770,820. Management has estimated that the preliminary post-closing working capital adjustments amounted to $110,604, which management estimates will result in a decrease of the unsecured promissory notes payable from $770,820 to $660,216. The promissory notes mature on May 1, 2018 and bear interest at an annual rate of 1.15%. The notes and accrued and unpaid interest are payable in quarterly installments beginning August 1, 2017. The principal balance of $660,216 is recognized in the current portion of notes payable in the consolidated balance sheet as of May 31, 2017.

 

The estimated contingent cash consideration of $50,000 for the web domain acquisition, and the contingent cash consideration of $1,735,375 for the CMP acquisition is included in long-term notes payable on the consolidated balance sheet as of May 31, 2017.