NOTE

- LONG-TERM DEBT

Long-term debt at

December 31, 2019

and

2018

is as follows:

Bank name	Maturity	Interest rate at December 31, 2019			As of December 31, 2019			As of December 31, 2018
East West Bank – (a)	August 2027 - September 2029	3.94%	-	4.25%	$	6,989,016		$	5,053,539
Capital Bank – (b)	October 2027		3.85%			4,967,075			5,138,988
Bank of America – (c)	April 2021 – December 2029	3.9%		5.51%		4,263,663			1,363,211
J.P. Morgan Chase (d)	February 2023 – December 2023		3.07%			2,702,371			-
BMO Harris Bank – (e)	April 2022 - January 2024	5.87%	-	5.99%		508,564			2,256,724
Peoples United Bank – (e)	April 2020 – January 2023	5.75%		7.53%		1,114,993
Other finance companies – (e)	January 2020 – March 2024	3.9%	-	6.14%		716,315			752,833
Total debt						21,261,997			14,565,295
Less: current portion						(2,726,981	)		(1,455,441	)
Long-term debt					$	18,535,016		$	13,109,854

The terms of the various loan agreements related to long-term bank borrowings contain certain restrictive financial covenants which, among other things, require the Company to maintain specified ratios of debt to tangible net assets and debt service coverage. As of

December 31, 2019

and

2018,

the Company was in compliance with such covenants.

The loans outstanding were guaranteed by the following properties, entities or individuals, or otherwise secured as shown:

(a)

Guaranteed by

two

shareholders of the Company, as well as

five

subsidiaries of the Company, Han Feng, TT, MFD, R&N Holding and R&N Lexington. Also secured by assets of Han Feng and R&N Lexington and R&N Holding,

two

real properties of R&N Holding, and a parcel of real property owned by R&N Lexington. Balloon payment of

$2,293,751

is due in

2027

and another balloon payments of

$3,007,239

is due in

2029.

(b)	Guaranteed by two shareholders, as well as Han Feng, a subsidiary of the Company. Also secured by a real property owned by HG Realty. Balloon payment for this debt is $3,116,687.

(c)	Guaranteed by two shareholders, as well as two subsidiaries of the Company, NSF and BB. Secured by real property, equipment and fixtures, inventories, receivables and all other personal property owned by NSF. Balloon payment for this long-term debt is $1,382,046.

(d)	Secured by specific vehicles and equipment as defined in loan agreements.

(e)	Secured by vehicles.

The future maturities of long-term debt as of

December

31,2019

are as follows:

Twelve months ending December 31,
2020	$	2.726.981
2021		2,498,578
2022		2,169,861
2023		1,202,845
2024		684,129
Thereafter		11,979,603
Total	$	21,261,997