Company: RMIX
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001104659-25-110488
Chunk: 638

Company: Suncrete, Inc.
Filing Date: 2025-11-12
Form: S-4
Chunk 638
---
 | ​ | ​    | ​ |   296,582 | ​ | ​ |
| ​                             | ​ | ​ | ​    | $ |         — | ​ | ​ | ​ | ​    | $ |   306,318 | ​ | ​ |

The Companies have unsecured notes payable to individual shareholders and members. These notes were renewed December 31, 2024, and mature on December 31, 2027. Interest accrues at 7% and is payable annually with all outstanding principal and interest due at maturity. The notes’ balance was $8,263,000 and $9,213,000 at December 31, 2024 and 2023, respectively. Interest expense related to the notes was $599,118 and $489,437 for the years ended December 31, 2024 and 2023, respectively. Note 9. Variable Interest Entities The Consolidations Topic of the FASB Accounting Standards Codification establishes standards for identifying a variable interest entity and for determining under what circumstances a variable interest entity (VIE) should be consolidated with its primary beneficiary. This topic requires a variable interest entity to be consolidated by a company if that company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from the VIE that could potentially be significant to the VIE. SRM Leasing, LLC and subsidiary and Schwarz Sand, LLC are considered VIEs and SRM the primary beneficiary under the requirements of Accounting Standards Codification 810, Consolidation (ASC 810). An entity with a controlling interest in a VIE is generally deemed to be its primary beneficiary. Leasing’s revenues are derived substantially from SRM through leasing arrangements. SRM and Leasing are co-borrowers on Leasing’s primary long-term debt obligations totaling $265,502 and $978,970 at December 31, 2024 and 2023, respectively. There is subordinated financial support of Leasing through loans from common owners totaling $1,550,000 and $2,000,000 at December 31, 2024 and 2023, respectively. Furthermore, there is an implicit agreement that SRM will provide financial support to Leasing in order for Leasing to fund debt services obligations and operations. Based on these factors SRM has determined Leasing meets the definition of a VIE and SRM is its primary beneficiary. Sand’s revenues are