Note 10 — Debt

Long-term notes payable consists of the following:

	March 31, 2013		December 31, 2012
Note payable to bank, with interest at 3.46%, payable in monthly principal installments of $72,917 plus interest through March 28, 2016, collateralized by all the assets of the Company except the Dansensor stock.	$	2,697,913	$	2,916,664

Seller financed note payable (Seller Note), with interest at 3.46%, payable in semi-annual payments of principal and interest totaling $891,000 beginning October 2, 2012 through April 2, 2015, collateralized by 65% of the outstanding stock of Dansensor.	3,409,887		3,517,067

Capital leases	54,288		59,286
Total long-term notes payable	$	6,162,088	$	6,493,017
Less current portion of long-term notes payable	2,511,471		2,566,154
Total long-term notes payable	$	3,650,617	$	3,926,863

The Company has a $5.0 million secured revolving line of credit with a maturity date of March 28, 2016. Interest is charged monthly at one-month LIBOR plus 1.75 basis points which totaled 2.00% at March 31, 2013. The line of credit is secured by the assets of the Company with the exception of the Dansensor stock. The Company had $3,650,000 outstanding on the line of credit at March 31, 2013. Additionally, Dansensor has a DKK 10,000,000 (approximately $1.7 million) available line of credit of which DKK 5,400,000 (approximately $932,000) was outstanding as of March 31, 2013. Outstanding borrowings are charged interest at 4.35% per year.

The Company is subject to various financial and restrictive covenants in the bank Credit Agreement, including maintaining certain financial ratios and limits on incurring additional indebtedness, making capital and lease expenditures and making share repurchases. As of March 31, 2013, the Company was not in compliance with one of these financial covenants with the Bank which relates to the Bank borrowings totaling approximately $6.3 million. The Company has obtained a waiver of this violation for the period ended March 31, 2013, and currently expects to be in compliance with such covenant in future periods.

The carrying value of the Seller Note is adjusted for foreign currency translation at each reporting period and the change in value is included in other income (expense) in the condensed consolidated statements of income.

As of March 31, 2013, the future minimum principal payments of the long-term notes payable for the remainder of 2013 and each of the four succeeding fiscal years and thereafter are as follows:

2013	$	2,511,471
2014	2,572,614
2015	989,572
2016	87,015
2017	1,416
Total	$	6,162,088