Long-term debt

12 Months Ended

Dec. 31, 2013

Revolving line of credit and Long-term debt [Abstract]

Long-term debt

Note 7 – Long-term debt:

On July 6, 2011, under the Equipment Finance Addendum to the Credit Agreement, REFCO provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54%.  Principal and interest on the term loan are payable in equal monthly installments through July 6, 2017, the date the term loan matures.  The proceeds of the term loan were used to pay the Kinpak’s remaining lease obligations in connection with the previously outstanding 2002 Series of Industrial Development Revenue Bonds issued by the City of Montgomery, Alabama (the “2002 Bonds”).  The 2002 Bonds were used to fund the expansion of Kinpak’s facilities and acquisition of related equipment.  At December 31, 2013 approximately $1,513,000 was outstanding under the term loan.

At December 31, 2013 and December 31, 2012, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations.  The capital leases, aggregating $19,532 and $37,552 at December 31, 2013 and December 31, 2012, respectively, have varying maturities through 2015 and carry interest rates ranging from 7% to 14%.

The following table provides information regarding the Company’s long-term debt at December 31, 2013 and 2012:

	Current Portion				Long-term Portion
	2013		2012		2013		2012
Term loan	$	403,074	$	389,075	$	1,109,680	$	1,512,754
Capitalized equipment leases		11,451		18,020		8,081		19,532
Total long-term debt	$	414,525	$	407,095	$	1,117,761	$	1,532,286

Required principal payments under these obligations are set forth below:

Year ending December 31,
2014	$	414,525
2015		425,657
2016		432,601
2017		259,503
Total	$	1,532,286