Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2021

Long-Term Debt

Schedule of long-term debt

	March 31,		December 31,
	2021		2020
	($000’s omitted)
Paycheck protection program payable to financial institutions: Interest rate of 1% per annum. Unforgiven portion is payable monthly until April 20, 2022 (A)	$	4,000	$	4,000
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 2.15000% (B)(C)		4,250		3,750
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.515130%, monthly principal payments of $21,833 through 2021 with a balloon payment of $286,000 due December 1, 2021(C).		483		1,048
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.515130%, monthly principal payments of $23,810 through December 1, 2021(C).		214		286
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 1.7955% - 1.8350% as of March 31, 2021)(D)		872		534
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 1.8227% - 1.8690% at time of funding)(E)		271		310
		10,090		9,928
Less current portion		(2,575)		(2,635)
	$	7,515	$	7,293

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 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 the loan forgiveness is determined or 10 months after the end of the borrower's covered period if forgiveness is not requested.

B.) The Company has a $6,000,000 line of credit.  The interest rate is a rate per year equal to the bank’s prime rate or Libor plus 2.15%. In addition, the Company is required to pay a commitment fee of 0.25% on the unused portion of the line of credit.  The line of credit expires December 21, 2022.  There was $4,250,000 balance outstanding at March 31, 2021 and $3,750,000 balance at December 31, 2020.

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 March 31, 2021 and December 31, 2020 the Company was in compliance with these covenants.

D.) The Company has an equipment loan facility in the amount of $1,000,000 available until July 9, 2021.  This line is 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.  During the three months ended March 31, 2021, approximately $384,500 was drawn on this facility.  There was approximately $872,000 outstanding at March 31, 2021 and $534,000 balance outstanding at December 31, 2020.

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 $271,000 outstanding at March 31, 2021 and $310,000 at December 31, 2020.

Schedule of payments for capital lease obligations

	March 31,		December 31,
	2021		2020
	($000’s omitted)
2021		322		331
2022		392		316
2023		246		169
2024		188		112
2025 & beyond		91		—
Total principal and interest payments		1,239		928
Less amount representing interest		(96)		(83)
Present value of net minimum loan/lease payments		1,143		845
Less current portion		(378)		(301)
Long term principle payments	$	765	$	544