Long Term Debt

9 Months Ended

Sep. 30, 2014

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, 2014, approximately $1,212,000 was outstanding under the term loan. The term loan and the revolving line of credit under the Business Loan Agreement described in Note 6 are cross-defaulted (i.e., a default under one instrument will be deemed a default under the other).

At September 30, 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 $10,331 and $19,532 at September 30, 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 September 30, 2014 and December 31, 2013:

	Current Portion				Long Term Portion
	September 30,  2014		December 31,  2013		September 30,  2014		December 31,  2013
Term loan	$	413,903	$	403,074	$	797,886	$	1,109,680
Capitalized equipment leases		9,481		11,451		850		8,081
Total long term debt	$	423,384	$	414,525	$	798,736	$	1,117,761

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

12 month period ending September 30,
2015	$	423,384
2016		429,645
2017		369,091
Total	$	1,222,120