6.	LONG TERM DEBT

On July 6, 2011, Regions Equipment Finance Corporation, a subsidiary of Regions Bank, provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54%, subject to an increase to 4.55% in the event the Company's debt service coverage ratio (net profit plus taxes, interest, depreciation, amortization and rent expense divided by debt service plus interest and lease/rent expense, calculated on a trailing four-quarter basis) falls to or below 2.0 to 1. 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, 2015, approximately $798,000 was outstanding under the term loan. The term loan and the revolving line of credit under the Bank Loan Agreement are cross-defaulted (i.e., a default under one instrument is a default under the other).

At September 30, 2015 and December 31, 2014, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations. The capital leases, aggregating $93,296 and $8,081 at September 30, 2015 and December 31, 2014, respectively, have varying maturities through 2020 and carry interest rates ranging from 2% to 14%.

The following table provides information regarding the Company’s long term debt at September 30, 2015 and December 31, 2014:

	Current Portion				Long Term Portion
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
Term loan	$	428,795	$	417,577	$	369,091	$	692,104
Capitalized equipment leases		19,312		8,081		73,984		---

Total long term debt	$	448,107	$	425,658	$	443,075	$	692,104

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

12 month period ending September 30,
2016	$	448,107
2017		387,894
2018		19,150
2019		19,503
2020		16,528

Total	$	891,182