NOTE 5. LONG-TERM DEBT

Long-term debt is comprised of the following:

	September 30,		December 31,
	2015		2014
Real estate loans	$	7,670,218	$	7,912,354
Hard Rock Note (net of $312,020 and $828,667 discount, respectively)		9,687,980		11,671,333
Machinery loans		897,377		1,019,100
Transportation loans		693,206		786,767
		18,948,781		21,389,554
Current portion of long-term debt		(2,599,303)		(10,720,243)
Long term portion of long-term debt	$	16,349,478	$	10,669,311

On May 29, 2014, the Company purchased all of the interests of Hard Rock. Consideration consisted of $12.5 million paid in cash at closing and a $12.5 million seller’s note (the “Hard Rock Note”).

On April 22, 2015, the Hard Rock Note was restated and amended (the “Amended and Restated Hard Rock Note”). The Amended and Restated Hard Rock Note accrued interest from April 20, 2015 until May 29, 2015 at an adjustable rate per annum equal to the JP Morgan Chase Bank, N.A. annual prime rate as it had originally. From May 29, 2015 until maturity, the Amended and Restated Hard Rock Note accrues interest at a fixed rate equal to 5.25% per annum.

Under the terms of the Amended and Restated Hard Rock Note, the Company made one installment payment of $2.5 million plus accrued interest on May 29, 2015, and is required to make four equal additional payments on January 15, 2016, July 15, 2016, January 16, 2017 and July 14, 2017.

On September 28, 2015, the Amended and Restated Hard Rock Note was restated and amended (the “Second Amended and Restated Hard Rock Note”). The Second Amended and Restated Hard Rock Note accrues interest from May 29, 2015 until June 30, 2015 at a fixed interest rate equal to 5.25% per annum and from July 1, 2015 until July 15, 2019 at a fixed interest rate equal to 5.75% per annum. Under the terms of the Second Amended and Restated Hard Rock Note, the Company is required to make the following payments (plus accrued interest): $500,000 on January 15, 2016, $1,500,000 on July 15, 2016, $500,000 on each of January 15, March 15, May 15 and July 15, 2017, $500,000 on each of January 15, March 15, May 15 and July 15, 2018, and $1,000,000 on each of January 15, March 15, May 15 and July 15, 2019. The Second Amended and Restated Hard Rock Note matures and is fully payable on July 15, 2019.

On April 9, 2015, the Company refinanced its $5.0 million note with American Bank of the North due August 15, 2015. Under the new agreement, the loan is now due August 15, 2018 and has an interest rate of 5.25%. Payment on the loan will be made in 39 monthly principal plus interest payments of $39,317 plus a final payment of $4,256,355 in August 2018. The collateral for the loan remains the Company’s corporate offices and manufacturing facilities, and the associated real estate. The Company provided a parent guarantee of the indebtedness, and Troy and Annette Meier provided personal guarantees.