SOCC, INC. dba
SEVEN OAKS COUNTRY CLUB
NOTES TO FINANCIAL STATEMENTS
Note 3. Inventories
Inventories consist of the following as of December 31, 2022 and 2021:
2022
2021
Golf shop Beverage
$
173,761 49,798 20,545 244,104
$
87,200 58,072 33,617 178,889
Food
$
$
Note 4. Property and Equipment
Property and equipment consist of the following as of December 31, 2022 and 2021:
2022
2021
Land improvements
$ 11,278,097
$ 11,301,410
Buildings and improvements Machinery and equipment
8,987,592 4,860,416 1,548,828 1,165,561
8,584,729 4,714,512 1,548,828 1,165,561
Furniture and fixtures
Land
Computers and software Construction in progress
15,330 132,803
5,330
32,387
27,988,627 13,613,036
27,352,757 13,211,318
Less accumulated depreciation
$ 14,375,591
$ 14,141,439
Note 5. Pledged Assets and Note Payable
The Club has a $500,000 secured credit agreement with a bank. The agreement provides for revolving credit through September 5, 2023. As of December 31, 2022 the full amount was available for draws under the agreement. The note bears interest at the banks prime rate (7.50% at December 31, 2022) plus 0.75%, with a floor rate of 4%, and is collateralized by cash and cash equivalents, accounts receivable, inventories, and property and equipment.
Note 6. Pledged Assets and Long-term Debt
The Club obtained a loan through the United States Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) program in the amount of $500,000 with monthly installment payments of $2,209, beginning December 2022. Interest on outstanding borrowings accrues at 2.75% per annum. Borrowings on the SBA loan are secured by certain personal property. The loan matures in May 2050 at which point all remaining principal and interest is due and payable.
Aggregate maturities required on long term debt during the next five years are: 2023, $12,950, 2024, $13,310, 2025, $13,681; 2026, $14,062, 2027, $14,454.
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