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LINES OF CREDIT

9 Months Ended

Sep. 30, 2022

NOTE 10 – LINES OF CREDIT

A summary of the Company’s lines of credit as of September 30, 2022 and December 31, 2021 is presented below:

	September 30, 2022			December 31, 2021
National	$	2,664,679		$	3,265,236
Alpha		809,447			947,333
Pancreta		1,013,595			489,985
National – COVID		302,516			407,174
EGF		328,550			-
Subtotal		5,118,787			5,109,728
Reclassification of National-COVID – Long-term		(194,132	)		(366,171	)
Ending balance	$	4,924,655		$	4,743,557

The line of credit with National Bank of Greece is renewed annually with current interest rates of 6.00%, 4.35% (“COSME 2” facility) and 4.35% (plus the 6-month Euribor plus any contributions currently in force by law on certain lines of credit), (“COSME 1” facility).

The maximum borrowing allowed for the 6% line of credit was $2,910,443 and $2,489,960 as of September 30, 2022 and December 31, 2021, respectively. The outstanding balance of the facility was $1,838,806 and $2,185,413, as of September 30, 2022 and December 31, 2021, respectively.

The maximum borrowing allowed for the 4.35% lines of credit, was $978,300 and $1,131,800 as of September 30, 2022 and December 31, 2021, respectively. The outstanding balance of the facilities was $825,873 and $1,079,823 as of September 30, 2022 and December 31, 2021, 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 $978,300 and $1,131,800 as of September 30, 2022 and December 31, 2021, respectively. The outstanding balance of the facility was $809,447 and $947,333, as of September 30, 2022 and December 31, 2021, respectively.

The Company entered into a line of credit with Pancreta Bank on February 23, 2021. The line of credit is renewed annually with a current interest rate of 6.10%. The maximum borrowing allowed as of September 30, 2022 and December 31, 2021 was $1,359,837 and $565,900, respectively. The outstanding balance of the facility as of September 30, 2022 and December 31, 2021, was $1,013,595 and $489,985, respectively.

The Company entered into a line of credit with EGF on June 6, 2022. The line of credit is renewed annually with a current interest rate of 4.49%. The maximum borrowing allowed as of September 30, 2022 was $391,320. The outstanding balance of the facility as of September 30, 2022 was $328,550.

Interest expense for the three months ended September 30, 2022 and 2021, was $13,804 and $11,656, respectively and for the nine months ended September 30, 2022 and 2021, was $136,222 and $165,245, respectively.

Under the 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. As of September 30, 2022 and December 31, 2021, the Company was in compliance with these ratios and covenants.

The above lines of credit are guaranteed and backed by customer receivable checks and they are not considered to be a direct debt obligation for the Company. They are a type of factoring, where the postponed customer checks are assigned by the Company to the bank, in order to be financed at a pre-agreed rate.

COVID-19 Government Funding

Interest expense for nine months ended September 30, 2022 and 2021 was $330 and $0, respectively.