Long-Term Debt

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-Term Debt

5. Long-Term Debt

	March 31,			December 31,
	2018			2017
	($000's omitted)
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.06% as of March 31, 2018), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021	$	1,769		$	1,835
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.06% as of March 31, 2018), monthly prinicipal payments of $23,810 through December 1, 2021		1,071			1,142
Lease line of credit for equipment; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.8524982% at time of funding), monthly principal payments of $12,675 through January 8, 2022		711			654
		3,551			3,631
Less current portion		(700	)		(681	)
	$	2,851		$	2,950

The Company has a $2,000,000 line of credit on which there was no balance outstanding at March 31, 2018 and December 31, 2017.

The term loans 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, 2018 and December 31, 2017 the Company was in compliance with these covenants.

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 is non-revolving and non-renewable. The lease term for equipment covered by the lease line of credit is 60 months. Monthly payments will be 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 $711,000 outstanding at March 31, 2018.