4. Long-Term Debt


	December 31,		December 31,
	2019		2018
	($000's omitted)
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31,2019) (A)	$	3,000	$	—

Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 (B)		1,310		1,572

Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.1085% as of December 31, 2019), monthly prinicipal payments of $23,810 through December 1, 2021 (B)		571		857

Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding) (C)		670		0

Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) (D)		468		704
		6,019		3,133
Less current portion		(849)		(723)
	$	5,170	$	2,410

A.)

At December 31, 2019, the Company had a $4,000,000 line of credit. As of March 20, 2020, the Company increased its line of credit to $6,000,000. The interest rate is a rate per year equal to the bank’s prime rate or Libor plus 1.4%. In addition, effective June 17, 2019, the Company is required to pay a commitment fee of 0.15% on the unused portion of the line of credit. The line of credit expires June 19, 2021. There was $3,000,000 balance outstanding at December 31, 2019 and $0 balance at December 31, 2018.

B.)

The term loans and line of credit are secured by all personal property of the Company with the exception of certain equipment that was purchased from proceeds of government grants. Certain lenders require the Company to comply with debt covenants as described in the specific loan documents, including a debt service ratio. At December 31, 2019 and December 31, 2018 the Company was in compliance with these covenants.

C.)

The Company had an equipment loan facility in the amount of $2,500,000 available until November 30, 2019. This line was non-revolving and non-renewable. The loan term for the equipment covered by the agreement is 60 months. Monthly payments are fixed for the term of each funding based upon the Lender’s lease pricing in effect at the time of such funding. There was approximately $670,000 outstanding at December 31, 2019 and no balance outstanding at December 31, 2018.

D.)

The Company established a lease line of credit for equipment financing in the amount of $1,000,000 available until June 28, 2018. This line was non-revolving and non-renewable. The lease term for equipment covered by the lease line of credit is 60 months. Monthly payments are fixed for the term of each funding based upon the Lender’s lease pricing in effect at the time of such funding. There was approximately $468,000 outstanding at December 31, 2019 and $704,000 at December 31, 2018.

Principal maturities of long-term debt are as follows: 2020 - $849,000, 2021 - $4,635,000, 2022 - $288,000, 2023 - $154,000, and 2023 - $93,000. Remaining principal payments for the capital note and capital lease obligations for each of the next five years:


	December 31,
	2019
Year	($000's omitted)

2020		331
2021		331
2022		316
2023		169
2024		97
Total principal and interest payments		1,244
Less amount representing interest		(106)
Present value of net minimum lease payments		1,138
Less current portion		(301)
Long term principle payments	$	837