During 2011 the Company decided to sell its production facility in Salem, South Dakota. A public cry-out auction was held during the 4 th quarter of fiscal year 2012. The sale was finalized on December 21, 2012 for the bid price of $87,500 less settlement fees. The Company recognized an asset impairment of approximately $95,000 in fiscal year 2012 due to the Company’s carrying value exceeding the bid price.
Additionally, during fiscal year 2012, the Company decided to sell its farm and pasture land near its Armstrong, Iowa production facility. A public cry-out auction was held during 4 th quarter of fiscal year 2012. The sale was finalized during December, 2012 for the bid price of $776,000. The Company will recognize a gain of approximately $658,000 less transaction settlement expenses in the 1 st quarter of fiscal year 2013.
On February 1, 2013, the Company refinanced its loan with the Iowa Finance Authority. The loan now has a stated interest rate of 2.75%, a decrease of 0.75% from original interest rate of 3.50%. Maturity date and other terms remain unchanged. (See Note 9, “Loan and Credit Agreements” for a discussion of this loan).