Note 7 – Long-term debt:

On July 6, 2011, in connection with a credit agreement among the Company, Kinpak, Regions Bank and Regions Equipment Finance Corporation (“REFCO”), an Equipment Finance Addendum to the Credit Agreement was entered into by the Company, Kinpak and REFCO. Under the Addendum, REFCO provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54% per annum. Principal and interest on the term loan are payable in equal monthly installments of $37,511 through July 6, 2017, the date the term loan matures. In the event the Company’s debt service coverage ratio falls to or below 2.0 to 1, interest on the term loan will increase to 4.55% per annum. The Company’s debt service coverage ratio exceeded 3.0 to 1 for the year ended December 31, 2015. The proceeds of the term loan were used to pay Kinpak’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 December 31, 2015 approximately $692,000 was outstanding under the term loan.

At December 31, 2015 and 2014, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations. The capital leases aggregating approximately $88,000 and $8,000 at December 31, 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 December 31, 2015 and 2014:

	Current Portion				Long-term Portion
	2015		2014		2015		2014

Term loan	$	432,601	$	417,577	$	259,503	$	692,104
Capitalized equipment leases		18,547		8,081		69,315		--

Total long-term debt	$	451,148	$	425,658	$	328,818	$	692,104

Required principal payments under these obligations are set forth below:

Year ending December 31,
2016	$	451,148
2017		278,392
2018		19,238
2019		19,593
2020		11,595
Total	$	779,966