5. Long-Term Debt


	June 30,		December 31,
	2020		2019
	($000’s omitted)
Paycheck protection progam payable to financial institutions: Interest rate of 1% per annum. Unforgiven portion is payable monthly until April 20, 2022 (A)	$	4,000	$	—

Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 1.65% (1.579% as of June 30, 2020) (B) (C )		3,750		3,000

Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.573% as of June 30, 2020), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 (C)		1,179		1,310

Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (2.981130% as of June 30, 2020), monthly prinicipal payments of $23,810 through December 1, 2021 (C)		430		571

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 1.8259% - 1.835015% as of June 30, 2020) (D)		602		670

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) (E)		388		468
		10,349		6,019
Less current portion		(849)		(849)
	$	9,500	$	5,170

A.)

On April 21, 2020, the Company executed a promissory note (the "Note") in the amount of $4,000,000 as part of the Paycheck Protection Program (the "PPP Loan") administered by the Small Business Administration (the "SBA") and authorized under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act"). The PPP Loan is being made through the Bank of America, NA (the "Lender"). The term of the PPP Loan is two years with an annual interest rate of 1.00%. Payments of principal and interest on the PPP Loan will be deferred for the first six months of the loan term. Payments on any unforgiven amounts will begin on the date on which loan forgiveness is determined or 10 months after the end of the borrower's covered period if forgiveness is not requested. Commencing one month after the expiration of the deferral period, the Company is required to pay the Lender the principal amount outstanding on the PPP Loan in equal monthly payments of principal and interest.

B.)

As of March 20, 2020, the Company increased its line of credit from $4,000,000 to $6,000,000. As of July 31, 2020, the Company extended the line of credit to expire December 31, 2022. As of July 31, 2020, the interest rate is a rate per year equal to the bank’s prime rate or Libor plus 1.65%. In addition, the Company is required to pay a commitment fee of 0.25% per year on the unused portion of the line of credit. There was $3,750,000 balance outstanding at June 30, 2020 and $3,000,000 balance at December 31, 2019.

C.)

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 June 30, 2020 and December 31, 2019 the Company was in compliance with these covenants.

D.)

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 Company used approximately $721,000 of the available funds for the purchase of machinery and equipment. 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 $602,000 outstanding at June 30, 2020 and $670,000 at December 31, 2019.

E.)

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 $388,000 outstanding at June 30, 2020 and $468,000 at December 31, 2019.

F.)

The Company has an equipment loan facility in the amount of $1,000,000 available until July 9, 2021. 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 is nothing outstanding as of June 30, 2020 and at December 31, 2019.

Remaining principal maturities of long-term debt are as follows: 2020 - $430,000, 2021 - $4,635,000, 2022 - $5,037,000, 2023 - $154,000 and 2024 - $93,000. Remaining principal payments and interest payments for the capital note and capital equipment financing lease obligations for each of the next five years:


	June 30,		December 31,
Year	2020		2019
	($000’s omitted)

2020	$	166	$	331
2021		331		331
2022		316		316
2023		169		169
2024		97		97
Total principal and interest payments		1,079		1,244
Less amount representing interest		(89)		(106)
Present value of net minimum lease payments		990		1,138
Less current portion		(301)		(301)
Long-term principle payments	$	689	$	837