LINES OF CREDIT

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

NOTE 10 - LINES OF CREDIT

The line of credit with National Bank of Greece is being renewed annually with a current interest rate of 6.00%. The maximum borrowing allowed was $1,933,580 and $1,374,720 at June 30, 2019 and December 31, 2018, respectively. The outstanding balance was $1,946,990 and $766,575 at June 30, 2019 and December 31, 2018, respectively.

The line of credit with Alpha Bank of Greece is renewed annually with a current interest rate of 6.00%. The maximum borrowing allowed was $682,440 and $687,360 at June 30, 2019 and December 31, 2018, respectively. The outstanding balance was $664,636 and $461,179 at June 30, 2019 and December 31, 2018, respectively.

Interest expense for the six months ended June 30, 2019 and 2018 was $125,466.

Under the above agreements, the Company is required to maintain certain financial ratios and covenants. These lines of credit were assumed in the Company’s acquisition of Cosmofarm. During the six months ended June 30, 2019, the Company was in compliance with these ratios and covenants.