NOTES PAYABLE |
NOTES PAYABLE
Notes payable consist of the following (in thousands): | | | | | | | | | | | | December 31, | | | 2017 | | 2016 | Note payable to a Bank, maturing June 2021; with monthly payments of approximately $26 of principal and interest fixed at 3.99%; collateralized by principally all assets of the Company. | | $ | 1,071 |
| | $ | 1,329 |
| | | | | | Note payable to a Bank, maturing July 2031; with monthly payments of approximately $11 of principal and interest fixed at 5.29%; collateralized by principally all assets of Smith-Columbia Corporation and guaranteed by Smith-Midland Corporation. | | 1,234 |
| | 1,293 |
| | | | | | Note payable to a Bank, maturing April 2021; with monthly payments of approximately $6.2 of principal and interest at prime at variable rate (5.29% at December 31, 2017); collateralized by certain property of the Company. | | 227 |
| | 288 |
| | | | | | Installment notes, collateralized by certain machinery and equipment maturing at various dates, primarily through 2021; with monthly payments varying from $0.3 to $4.1 with weighted average interest at 4.2%. | | 1,001 |
| | 1,023 |
| | | | | | A revolving line-of-credit evidenced by a note payable to a Bank, with the maximum amount of $2,000,000, maturing September 12, 2018, with interest only payments and an initial rate of 4.49% adjustable monthly (3.99% at December 31, 2017). The line-of-credit is collateralized by a first lien position on the Company's accounts receivable and inventory and a second lien position on all other business assets. | | — |
| | — |
| | | | | |
| | 3,533 |
| | 3,933 |
| Less current maturities | | 637 |
| | 587 |
| | | | | |
| | $ | 2,896 |
| | $ | 3,346 |
|
The Company’s note payable, which matures in June 2021, with a balance (in thousands) of $1,071 at December 31, 2017, is secured by all of the assets of the Company. The commitment letter provided by the bank dated September 12, 2017 includes certain restrictive covenants, which require the Company to maintain minimum levels of tangible net worth, places limits on annual capital expenditures and the payment of cash dividends. At December 31, 2017, the Company was in compliance with all covenants pursuant to the loan agreement, with the increase in the annual capital expenditures limit from $1.5 million to $3.5 million during the year ended December 31, 2017.
The aggregate amounts of notes payable maturing in each of the next five years and thereafter are as follows (in thousands):
| | | | | Year Ending December 31, | | | | 2018 | $ | 637 |
| 2019 | 620 |
| 2020 | 640 |
| 2021 | 478 |
| 2022 | 166 |
| Thereafter | 992 |
| | |
| | $ | 3,533 |
| | |
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