Note 7 - Long-term Debt

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Long-term Debt [Text Block]

NOTE 7:     LONG-TERM DEBT

The Company has a revolving credit facility with HSBC Bank, USA, N.A. providing up to $7 million, although the Company has never utilized this facility. This credit facility remains available until September 1, 2018. The balances as of March 31, 2016 and December 31, 2015, on a term loan that was initially entered into in August, 2011 for $2.1 million, are $175,000 and $280,000 respectively. Interest on the unpaid $175,000 principal balance on this term loan accrues at either (i) the London Interbank Offered Rate (“LIBOR”) plus 1.75% or (ii) the bank’s prime rate minus 0.50%. The credit facility also contains certain financial covenants which the Company was in compliance with as of March 31, 2016 and December 31, 2015.

Pursuant to the terms of an Accommodation Agreement, we entered into a loan agreement with HSBC in the amount of $6,000,000, the proceeds of which were used to finance apportion of the purchase price of our headquarters. The Loan is secured by a mortgage against our Central Islip facility. The loan is payable in 120 consecutive equal monthly installments of principal of $25,000 plus interest thereon and a final balloon payment of $3.0 million. Interest accrues on the Loan, at our option, at the variable rate of LIBOR plus 1.75% which was 2.1740% and 1.9455% at March 31, 2016 and December 31, 2015 respectively. The balances on the mortgage at March 31, 2016 and December 31, 2015 were $3,490,508 and $3,565,508 respectively.