Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2020

Long-Term Debt

Schedule of long-term debt

	September 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% (B)(C)		3,750		3,000
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.556% as of September30, 2020), monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021(C).		1,114		1,310
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.556% as of September 30, 2020), monthly principal payments of $23,810 through December 1, 2021(C).		357		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)		569		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)		349		468
		10,139		6,019
Less current portion		(849)		(849)
	$	9,290	$	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 on the unforgiven amount of principal, if any, and interest on the PPP Loan will be deferred until 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.“

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 21, 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 September 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 September 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 $569,000 outstanding at September 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 $349,000 outstanding at September 30, 2020 and $468,000 at December 31, 2019.

Schedule of payments for capital lease obligations

	September 30,		December 31,
Year	2020		2019
	($000’s omitted)
2020	$	83	$	331
2021		331		331
2022		316		316
2023		169		169
2024		97		97
Total principal and interest payments		996		1,244
Less amount representing interest		(78)		(106)
Present value of net minimum lease payments		918		1,138
Less current portion		(301)		(301)
Long term principle payments	$	617	$	837