Note 4. Long-Term Debt

Long-term debt is summarized as follows:

	August 31,		August 31,
	2015		2014
Line of credit from Community Bank		-		1,684,000
Note payable to BMW Bank of North America, secured by automobile, monthly principal and interest payments totaling $901, interest at 0.9%, due June 2018		33,000		44,000
	$	33,000	$	1,728,000

The Company has a revolving credit agreement with Community Bank, N.A. which currently provides for borrowings of up to $10,000,000 and bears interest at either the 30, 60 or 90 day LIBOR (the 90 day LIBOR at August 31, 2015 and 2014 was 0.31% and 0.23%, respectively) plus 1.75% or the bank’s reference rate (3.25% at August 31, 2015 and 2014). Borrowings are secured by substantially all assets of the Company and are guaranteed by the Company’s Chief Executive Officer and Chairman of the Board, Glen F. Ceiley. The agreement, as amended in March 2015, expires in March 2017. There was a zero balance outstanding as of August 31, 2015 under this line of credit and $1,684,000 as of August 31, 2014. Availability under the line of credit was $10,000,000 and $8,316,000 at August 31, 2015 and 2014, respectively. The agreement contains certain nonfinancial and financial covenants, including the maintenance of certain financial ratios. As of August 31, 2015 and August 31, 2014, the Company was in compliance with all such covenants.

The scheduled payments for the above loans are as follows:

Years Ending August 31,
2016		11,000
2017		11,000
2018		11,000
	$	33,000