Long Term Debt

9 Months Ended

Sep. 30, 2012

Revolving Line Of Credit and Long Term Debt [Abstract]

LONG TERM DEBT

7. LONG TERM DEBT

On July 6, 2011, under the Equipment Finance Addendum to the Credit Agreement, REFCO provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54%.  Principal and interest on the term loan are payable in equal monthly installments through July 6, 2017, the date on which the term loan matures.  The proceeds of the term loan were used to pay the Company’s remaining obligations under a lease agreement relating to industrial revenue bonds used to fund the expansion of Kinpak’s facilities and acquisition of related equipment.  At September 30, 2012, approximately $1,997,000 was outstanding under the term loan.

At September 30, 2012 and December 31, 2011, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations.  The capital leases, aggregating $42,209 and $62,400 at September 30, 2012 and December 31, 2011, respectively, have varying maturities through 2015 and carry interest rates ranging from 7% to 14%.

The following table provides information regarding the Company’s long term debt at September 30, 2012 and December 31, 2011:

	Current Portion				Long Term Portion
	September 30,  2012		December 31, 2011		September 30,  2012		December 31, 2011
Term loan		385,652		375,562		1,611,316		1,901,830
Capitalized equipment leases		18,619		24,868		23,590		37,532
Total long term debt	$	404,271	$	400,430	$	1,634,906	$	1,939,362

Required principal payments under the Company’s long term obligations are set forth below:

12 month period ending September 30,
2013	$	404,271
2014		412,786
2015		423,384
2016		429,645
2017		369,091
Total	$	2,039,177