Note 7- Long Term Debt

Note Payable – Enterprise Bank

In connection with its acquisition of Message Logic, LLC, the Company assumed a loan with Enterprise Bank. The loan was due on April 30, 2016. There has been no default notice from Enterprise Bank. Enterprise Bank has requested that we move from an interest only payment to a self-amortized arrangement. The Company is in the process of renegotiating a new payment plan. Interest only payments have been paid with the last monthly payment made in February 2018. The interest rate on this note was 6.5%. The Company is in current negotiations to either modify or extend this loan.

Notes Payable – Related Party

On February 1, 2017, the Company entered into a note with Systems Trading to refinance old liabilities. The note called for monthly payments of $10,293 and matured on January 31, 2019. It carries an interest rate of 0%.

On May 1, 2017, the Company entered into a note with Systems Trading to refinance advances made by DSC’s President. The note called for monthly payments of $5,283 and matured on April 1, 2020. It carries an interest rate of 0%.

On March 7, 2018, the Company entered into a lease with Systems Trading, Inc. (“Systems Trading”), a company owned by DSC’s President, to refinance and consolidate notes payable – related party and existing leases referenced in Note 5. The lease calls for bi-monthly payments of $23,475 and expires on April 6, 2022. It carries an interest rate of 5%.

Future minimum payments under these note agreements are reflected in Note 5 above.