Note 10 - Long-Term Debt

Notes Payable

Notes payable consist of the following at December 31 (in thousands):

	2012			2011
Equipment loan; 12.1%, principal payments due in monthly installments of $13,089 through March 2016	$	510		$	―
Loan agreements; bear interest at 3% per annum; repayment is conditional		400			300
Opportunity Grant Fund notes payable; non-interest bearing; principal only payments due in monthly installments of $6,667 through April 2012		―			20
Total		910			320
Less ― current portion		(157	)		(20	)
Long-term portion	$	753		$	300

Equipment Loan

In September 2012, the Company entered into a Master Security Agreement with General Electric Capital Corporation ("GE"), whereby the Company can borrow up to $2.0 million to finance the purchases of equipment ("Equipment Loan"). Each Equipment Loan bears interest at the three-year U.S. Government treasury rate plus 11.68%, provided that the rate shall not be less than 12.1%, and is to be repaid over forty-two (42) months. GE will maintain a security interest in all equipment financed under this facility. During 2012, the Company financed $0.5 million at an interest rate of 12.1% with monthly principal payments of $13,089, which began in October 2012. Interest accrues on the outstanding balance until paid in full.

Loan Agreements

In May 2008, the Company entered into loan agreements with the State of Maryland and Montgomery County. The repayment of loan amounts and accrued interest, if any, is conditioned upon the Company meeting the capital investment and employment requirements during the term of the loans through 2014, as amended.

Aggregate future minimum principal payments on long-term debt at December 31, 2012 are as follows (in thousands):

Year	Amount
2013	$	357
2014		357
2015		157
2016		39
Total minimum principal payments	$	910