Long Term Debt

3 Months Ended

Mar. 31, 2014

Revolving Line of Credit and Long Term Debt [Abstract]

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 March 31, 2014, approximately $1,413,000 was outstanding under the term loan.

At March 31, 2014 and December 31, 2013, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations. The capital leases, aggregating $15,341 and $19,532 at March 31, 2014 and December 31, 2013, 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 March 31, 2014 and December 31, 2013:

	Current Portion				Long Term Portion
	March 31, 2014		December 31, 2013		March 31, 2014		December 31, 2013
Term loan	$	406,652	$	403,074	$	1,006,666	$	1,109,680
Capitalized equipment leases		9,588		11,451		5,753		8,081

Total long term debt	$	416,240	$	414,525	$	1,012,419	$	1,117,761

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

12 month period ending March 31,
2015	$	416,240
2016		427,036
2017		436,441
2018		148,942
Total	$	1,428,659