Note 11. Long-Term Debt

Long-term debt consisted of the following:

	March 31,		June 30,
(In thousands)	2014		2013
Pennsylvania Industrial Development Authority loan	$	—	$	696
Tax-exempt bond loan (PAID)	—		150
Wells Fargo N.A. Townsend Road mortgage	—		2,614
Pennsylvania Industrial Development Authority Townsend Road mortgage	—		1,794
First National Bank of Cody mortgage	1,169		1,260
Total debt	1,169		6,514
Less current portion	128		670
Long term debt	$	1,041	$	5,844

Current Portion of Long Term Debt:

	March 31,		June 30,
(In thousands)	2014		2013
Pennsylvania Industrial Development Authority loan	$	—	$	84
Tax-exempt bond loan (PAID)	—		150
Wells Fargo N.A. Townsend Road mortgage	—		204
Pennsylvania Industrial Development Authority Townsend Road mortgage	—		109
First National Bank of Cody mortgage	128		123
Total current portion of long term debt	$	128	$	670

The Company financed $1.3 million through the Pennsylvania Industrial Development Authority (“PIDA”). The Company is required to make equal payments each month for 180 months starting February 1, 2006 with interest of 2.75% per annum. In December 2013 the Company repaid, in full, the PIDA loan.

In April 1999, the Company entered into a loan agreement with a governmental authority, the Philadelphia Authority for Industrial Development (the “Authority” or “PAID”), to finance future construction and growth projects of the Company. The Authority issued $3.7 million in tax-exempt variable rate demand and fixed rate revenue bonds to provide the funds to finance such growth projects pursuant to a trust indenture (“the Trust Indenture”). A portion of the Company’s proceeds from the bonds was used to pay for bond issuance costs of $170 thousand. In February 2014, the Company repaid, in full, the PAID bond. The Trust Indenture required that the Company repay the Authority loan through installment payments beginning in May 2003 and continuing through May 2014, the year the bonds matured. The bonds interest rate had been a floating variable rate determined by the organization responsible for selling the bonds. The interest rate fluctuated on a weekly basis. The effective interest rate at June 30, 2013 was 0.26%.

The Company negotiated a set of mortgages on its Townsend Road facility with both Wells Fargo and the PIDA. In December 2013 the Company repaid, in full, both mortgages associated with its Townsend Road facility. The Wells Fargo portion of the loan was originally for $3.1 million, had a floating interest rate of the one month LIBOR rate plus 2.95%, was amortized over a 15 year term and had an 8 year maturity date. The effective interest rate at June 30, 2013 was 3.14%. The PIDA portion of the loan was originally for $2.0 million, had an interest rate of 3.75% and matured in 15 years. As of June 30, 2013, the Company was in compliance with the financial covenants under the agreements. The Company had also previously executed Security Agreements with Wells Fargo, PIDA and Philadelphia Industrial Development Corporation (“PIDC”) in which the Company had agreed to pledge its working capital, some equipment and its Townsend Road property to collateralize the amounts due. These Security Agreements were terminated in December 2013 as a result of the Company’s repayment of both mortgages associated with the Townsend Road facility.

The Company is the primary beneficiary to a VIE called Realty. See Note 12 “Consolidation of Variable Interest Entity” for additional description. The VIE owns land and a building which is leased to Cody Labs. A mortgage loan with First National Bank of Cody has been consolidated in the Company’s financial statements, along with the related land and building. The mortgage requires monthly principal and interest payments of $15 thousand. Effective February 2011, the interest rate was modified from a fixed rate of 7.5% to a floating rate based on the New York Prime Rate with a floor of 4.5% and a ceiling of 9.0%, with payments to be made through April 2022. As of March 31, 2014 and June 30, 2013, the effective interest rate was 4.5%. The mortgage is collateralized by the land and building.

Long-term debt amounts due for the twelve month periods ending March 31 were as follows:

	Amounts Payable
(In thousands)	to Institutions
2014	$	128
2015	133
2016	139
2017	146
2018	153
Thereafter	470
Total	$	1,169