Note 8 - Long-Term Debt

12 Months Ended

Dec. 31, 2012

Long-term Debt [Text Block]

Note 8 – Long-term Debt

Long-term debt as of December 31 consists of the following:

	2012		2011
HSBC BANK USA, NA
$2,100,000 5 year term loan payable in monthly installments of $35,000 plus interest on the unpaid principal balance which accrues at a fixed rate of 3.045%. This term loan is secured by $1 million, provided that, so long as no event of default has occurred and is then continuing, HSBC will release $200,000 of the collateral on each anniversary of the closing date. On August 5, 2012 HSBC released $200,000, to reduce the collateral to $800,000	$	1,540,000	$	1,960,000
GENERAL ELECTRIC CAPITAL CORPORATION
$2,700,000 Mortgage payable secured by real property, building and improvements at 1860 Smithtown Avenue, Ronkonkoma, NY payable in monthly installments of $22,285 including interest at 5.67% per annum; pursuant to an installment sale agreement with the Town of Islip Industrial Development Agency; final payment due March 2017		1,007,841		1,211,795
HSBC BANK USA, NA
$6,000,000 Mortgage payable secured by real property Buildings and improvements at 355 South Technology Drive, Central Islip, NY payable in monthly principle installments of $25,000 plus interest. Interest presently accrues at our option, at the variable rate of LIBOR plus 1.75% or HSBC’s prime rate minus 0.50% The loan matures on March 1, 2022.		5,775,000		-----
Totals		8,322,841		3,171,795
Less: Current maturities		935,822		623,953
Long-term debt		7,387,019		2,547,842

Future maturities of long-term debt as of December 31, 2012 are as follows:

2013	$	935,822
2014		948,382
2015		961,673
2016		835,738
2017		366,226
Thereafter		4,275,000
	$	8,322,841

As of December 31, 2012, we were not in compliance with the terms of the covenants in all three of the HSBC Bank, USA, N.A. and General Electric Capital Corporation loan agreements. We received waivers on all three agreements.