Note 10. Long-Term Debt

Long-term debt consisted of the following:

	June 30,		June 30,
(In thousands)	2013		2012
Pennsylvania Industrial Development Authority loan	$	696	$	777
Tax-exempt bond loan (PAID)	150		290
Wells Fargo N.A. Townsend Road mortgage	2,614		2,818
Pennsylvania Industrial Development Authority Townsend Road mortgage	1,794		1,899
First National Bank of Cody mortgage	1,260		1,377
Total debt	6,514		7,161
Less current portion	670		648
Long term debt	$	5,844	$	6,513

Current Portion of Long Term Debt:

	June 30,		June 30,
(In thousands)	2013		2012
Pennsylvania Industrial Development Authority loan	$	84	$	81
Tax-exempt bond loan (PAID)	150		140
Wells Fargo N.A. Townsend Road mortgage	204		204
Pennsylvania Industrial Development Authority Townsend Road mortgage	109		105
First National Bank of Cody mortgage	123		118
Total current portion of long term debt	$	670	$	648

The Company financed $1.3 million through the Pennsylvania Industrial Development Authority (“PIDA”). The Company is required to make equal payments each month for 180 months starting February 1, 2006 with interest of 2.75% per annum.

In April 1999, the Company entered into a loan agreement with a governmental authority, the Philadelphia Authority for Industrial Development (the “Authority” or “PAID”), to finance future construction and growth projects of the Company. The Authority issued $3.7 million in tax-exempt variable rate demand and fixed rate revenue bonds to provide the funds to finance such growth projects pursuant to a trust indenture (“the Trust Indenture”). A portion of the Company’s proceeds from the bonds was used to pay for bond issuance costs of $170 thousand. The Trust Indenture requires that the Company repay the Authority loan through installment payments beginning in May 2003 and continuing through May 2014, the year the bonds mature. The bonds bear interest at the floating variable rate determined by the organization responsible for selling the bonds. The interest rate fluctuates on a weekly basis. The effective interest rate at June 30, 2013 and 2012 was 0.26% and 0.38%, respectively.

The Company negotiated a set of mortgages on its Townsend Road facility with both Wells Fargo and the PIDA. The Wells Fargo portion of the loan is for $3.1 million, bears a floating interest rate of the one month LIBOR rate plus 2.95%, amortizes over a 15 year term and has an 8 year maturity date. The effective interest rate at June 30, 2013 and 2012 was 3.14% and 3.20%, respectively. The PIDA portion of the loan is for $2.0 million, bears an interest rate of 3.75% and matures in 15 years. Both loans closed and were funded in May 2011. As of June 30, 2013 and 2012, the Company was in compliance with the financial covenants under the agreements.

The Company has executed Security Agreements with Wells Fargo, PIDA and Philadelphia Industrial Development Corporation (“PIDC”) in which the Company has agreed to pledge its working capital, some equipment and its Townsend Road property to collateralize the amounts due.

The Company is the primary beneficiary to a VIE called Realty. See Note 11 “Consolidation of Variable Interest Entity” for additional description. The VIE owns land and a building which is being leased to Cody Labs. A mortgage loan with First National Bank of Cody has been consolidated in the Company’s financial statements, along with the related land and building. The mortgage requires monthly principal and interest payments of $15 thousand. Effective February 2011, the interest rate was modified from a fixed rate of 7.5% to a floating rate based on the New York Prime Rate with a floor of 4.5% and a ceiling of 9.0%, with payments to be made through April 2022. As of June 30, 2013 and June 30, 2012, the effective rate was 4.5%. The mortgage is collateralized by the land and building.

Long-term debt amounts due, for the twelve month periods ending June 30 were as follows:

	Amounts Payable
(In thousands)	to Institutions
2014	$	670
2015	531
2016	544
2017	557
2018	571
Thereafter	3,641
Total	$	6,514