7. LONG-TERM DEBT

The Company has two loans outstanding which bear interest at 4.75%, mature in February 2027 and are collateralized by the facility the Company owns in Corvallis, Oregon. At December 31, 2012, these loans had unpaid principal balances of $1,117,000 and $640,000, for a total indebtedness of $1,757,000. The Company incurred interest expense on these loans of $86,000, $90,000 and $94,000, respectively, for 2012, 2011 and 2010.

The following table sets forth the expected future principal payments on these loans for the years shown (in thousands):


2013	$	89
2014		93
2015		98
2016		103
2017		108
Thereafter		1,266

Total scheduled loan principal payments	$	1,757