Note 7 - Long-term Debt	3 Months Ended
Mar. 31, 2020
Notes to Financial Statements
Long-term Debt [Text Block]	NOTE 7: LONG-TERM DEBT The Company has a loan agreement with HSBC which is secured by a mortgage against our Central Islip, NY headquarters. The loan is payable in 120 consecutive equal monthly installments of $25,000 in principal plus interest and a final balloon payment upon maturity in March 2022. The balances as of March 31, 2020 and December 31, 2019 were approximately $2.3 million and $2.4 million respectively. Interest accrues on the loan, at our option, at the variable rate of LIBOR plus 1.75% or Prime less 0.5% ( 2.45% and 3.49% at March 31, 2020 and December 31, 2019, respectively). On November 30, 2017, the Company purchased the premises located at 555 North Research Place, Central Islip, NY. The purchase price of the building was $13,850,000 exclusive of closing costs. The Company’s newly formed wholly-owned subsidiary, 555 N Research Corporation (the “Assignee”) and the Islip IDA, entered into a Fee and Leasehold Mortgage and Security Agreement (the ”Loan”) with HSBC in the amount of $10,387,500, which was used to finance a portion of the purchase price to acquire the premises located at 555 North Research Place, Central Islip, New York. The Loan was evidenced by the certain Note, dated November 30, 2017 ( the “Note”), by and between Assignee and the Bank, and secured by a certain Fee and Leasehold Mortgage and Security Agreement (the “Mortgage”), dated November 30, 2017, as well as a collateral Assignment of Leases and Rents. The Note is payable in 60 consecutive equal monthly installments of $62,481 including interest and a final balloon payment upon maturity in December 2022. The balance outstanding as of March 31, 2020 and December 31, 2019 were approximately $9.6 million and $9.7 million respectively. The Note bears interest for each Interest Period (as defined in the Note), at the fixed rate of 3.9148%. As a condition of the Bank making the Loan, the Company was required to guaranty Assignee’s obligations under the Loan pursuant that certain Unlimited Guaranty, dated November 30, 2017 ( the “Guaranty”). On May 31, 2019, the Company entered into two sublease agreements for a portion of the CVD Materials facility. On October 30, 2019, the Tenant exercised its right to terminate the eastside Lease, which termination was effective as of December 31, 2019 ( the “Termination”). During the three months ended March 31, 2020 and 2019, the Company recognized $111,000 and $0, respectively, of rental income which commenced in June 2019. The Tenant has exercised its first option to renew the westside lease for a term of one year beginning July 1, 2020 and ending June 30, 2021. On August 5, 2019, the Company entered into a Mortgage Modification Agreement which replaced the former covenant with a Minimum Liquid Assets covenant. The Company is in compliance with its financial covenant under the mortgage at March 31, 2020.

NOTE

LONG-TERM DEBT

The Company has a loan agreement with HSBC which is secured by a mortgage against our Central Islip, NY headquarters. The loan is payable in

120

consecutive equal monthly installments of

$25,000

in principal plus interest and a final balloon payment upon maturity in

March 2022.

The balances as of

March 31, 2020

and

December 31, 2019

were approximately

$2.3

million and

$2.4

million respectively. Interest accrues on the loan, at our option, at the variable rate of LIBOR plus

1.75%

or Prime less

0.5%

(

2.45%

and

3.49%

March 31, 2020

and

December 31, 2019,

respectively).

November 30, 2017,

the Company purchased the premises located at

555

North Research Place, Central Islip, NY. The purchase price of the building was

$13,850,000

exclusive of closing costs. The Company’s newly formed wholly-owned subsidiary,

555

N Research Corporation (the “Assignee”) and the Islip IDA, entered into a Fee and Leasehold Mortgage and Security Agreement (the ”Loan”) with HSBC in the amount of

$10,387,500,

which was used to finance a portion of the purchase price to acquire the premises located at

555

North Research Place, Central Islip, New York. The Loan was evidenced by the certain Note, dated

November 30, 2017 (

the “Note”), by and between Assignee and the Bank, and secured by a certain Fee and Leasehold Mortgage and Security Agreement (the “Mortgage”), dated

November 30, 2017,

as well as a collateral Assignment of Leases and Rents.

The Note is payable in

consecutive equal monthly installments of

$62,481

including interest and a final balloon payment upon maturity in

December 2022.

The balance outstanding as of

March 31, 2020

and

December 31, 2019

were approximately

$9.6

million and

$9.7

million respectively. The Note bears interest for each Interest Period (as defined in the Note), at the fixed rate of

3.9148%.

As a condition of the Bank making the Loan, the Company was required to guaranty Assignee’s obligations under the Loan pursuant that certain Unlimited Guaranty, dated

November 30, 2017 (

the “Guaranty”).

May 31, 2019,

the Company entered into

two

sublease agreements for a portion of the CVD Materials facility. On

October 30, 2019,

the Tenant exercised its right to terminate the eastside Lease, which termination was effective as of

December 31, 2019 (

the “Termination”). During the

three

months ended

March 31, 2020

and

2019,

the Company recognized

$111,000

and

$0,

respectively, of rental income which commenced in

June 2019.

The Tenant has exercised its

first

option to renew the westside lease for a term of

one

year beginning

July 1, 2020

and ending

June 30, 2021.

August 5, 2019,

the Company entered into a Mortgage Modification Agreement which replaced the former covenant with a Minimum Liquid Assets covenant. The Company is in compliance with its financial covenant under the mortgage at

March 31, 2020.