Annual report pursuant to Section 13 and 15(d)

NOTE 8 - DEBT

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NOTE 8 - DEBT
 12 Months Ended
Apr. 30, 2012
Debt Disclosure [Abstract]  
NOTE 8 - DEBT

 

 

NOTE 8 - DEBT

As of April 30, 2012 and 2011, the following long-term debts associated with the Freedom-2 Holdings, Inc. subsidiary are as follows:


             
  April 30, 2012 April 30, 2011
  Principal Accrued interest & penalty Total Principal Accrued interest & penalty Total
Note payable to Cornerstone Bank for a mortgage secured by the building, (see Note 12)



$     1,592,315

 $        404,197 $      1,996,512



$     1,592,315

 $        233,762 $      1,826,077
Increase for fair value at acquisition 112,681                    -    112,681 112,681                    -    112,681
Amortization of premium (91,104)                    -    (91,104) (62,334)                    -    (62,334)
Note payable for a mortgage 1,613,892 404,197 2,018,089 1,642,662 233,732 1,876,424
Note Payable to Fish & Richardson, secured by a second mortgage on the building with interest at 2.5% . - - -              178,951              23,784 202,735
Note Payable to MFE, LLC secured by a third mortgage on the property due 12/31/2009 with interest at 10% . - - -              150,000            27,500             177,500
License fee agreement with Brown University, amended February 12, 2009, for intellectual property rights. The license fee payments do not include interest.              400,000                    -                400,000              400,000                    -                400,000
Decrease for fair value at acquisition              (58,408)                    -                (58,408)              (58,408)                    -                (58,408)
Amortization of premium 56,910                    -    56,910 38,939                    -    38,939
Note fee payable 398,502                    -    398,502 381,531                    -    380,531
Bridge loan payable initiated 12/01/2008 accruing interest at 8% and payable upon maturity on 6/30/2010.                20,000 3,200 23,200                20,000 4,000 24,000
Note payable at 10% interest 60,000 66 60,066      
Total 2,092,394 407,463 2,499,857 2,372,144 289,046          2,661,190
Less: current portion 2,092,394 407,463          2,499,857 2,372,144 289,046          2,661,190
Long-term portion   $                  -    $                   -       $                 -    $               -    $                  -       $                 -

 

During the year ended April 30, 2012, the Company settled various debts with a combination of cash payments and the issuance of common stock. In total over $500,000 debt was settled. As a result of those settlements the Company recorded a gain of $370,619.