Long-Term Debt

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt

5. Long-Term Debt

		June 30,			December 31,
		2019			2018
		($000's omitted)
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021	$	1,441		$	1,572
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $23,810 through December 1, 2021		714			857
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)		617			704
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding)		601			-
		3,373			3,133
Less current portion		(844	)		(723	)
	$	2,529		$	2,410

Principal maturities of long-term debt are as follows: remainder 2019 - $422,000, 2020 - $844,000, 2021 - $1,630,000, 2022 - $282,000, 2023 - $135,000 and 2024 - $60,000.

The Company has a $4,000,000 line of credit. 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 no balance outstanding at June 30, 2019 and December 31, 2018.

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, 2019 and December 31, 2018 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 $617,000 outstanding at June 30, 2019 and $704,000 at December 31, 2018.

The Company has an equipment loan facility in the amount of $2,500,000 available until November 30, 2019. This line is non-revolving and non-renewable. The loan term for the equipment covered by the agreement 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 $601,000 outstanding at June 30, 2019 and no balance outstanding at December 31, 2018.

Principal and interest payments for the equipment note and equipment financing lease obligations for the remainder of 2019 and for each of the next five years:

		June 30,			December 31,
	Year	2019			2018
		($000's omitted)
	2019		165			193
	2020		330			193
	2021		330			193
	2022		330			193
	2023		141			4
	2024		68			-
Total principal and interest payments			1,364			776
Less amount representing interest			(146	)		(72	)
Present value of net minimum lease payments			1,218			704
Less current portion			(296	)		(175	)
Long term principle payments		$	922		$	529