Note 11 - Long-Term Debt

Notes Payable

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


	2013			2012
Equipment loan; 12.1%, principal payments due in monthly installments totaling $48 through December 2016	$	1,538		$	510
Loan agreements; bear interest at 3% per annum; repayment is conditional		200			400
Bank loans; 7.50% - 8.50%, principal payments due quarterly totaling $26 through May 2015		143			-
Total		1,881			910
Less - current portion		(877	)		(157	)
Long-term portion	$	1,004		$	753

Equipment Loan

In September 2012, the Company entered into a master security agreement with General Electric Capital Corporation ("GE"), whereby the Company could borrow up to $2.0 million to finance the purchases of equipment (each, an "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 the Equipment Loan. During 2013 and 2012, the Company financed $1.5 million and $0.5 million, respectively, under the Equipment Loans at interest rates of 12.1% with monthly principal payments totaling $47,618. Interest accrues on the outstanding balance until paid in full. As of December 31, 2013, the Company has financed $2.0 million in total under the Equipment Loans.

Loan Agreements

In May 2008, the Company entered into loan agreements with the State of Maryland. 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 loan through 2014, as amended. In 2013, the loan agreement with Montgomery County was forgiven as the Company met the capital investment and employment requirements.

Bank Loans

As a result of the acquisition of Isconova, the Company has assumed bank loans with AMLI. The bank loans bear interest rates ranging from 7.50% to 8.50% and are to be repaid through 2015.

Aggregate future minimum principal payments on long-term debt at December 31, 2013 are as follows (in thousands):


Year	Amount
2014	$	877
2015		608
2016		396
Total minimum principal payments	$	1,881