Note

–

Long-term Debt

Long-term debt as of December 31 consists of the following:
	2020			2019
HSBC $10,387,500 Mortgage payable secured by real property Buildings and improvements at 555 N Research Drive, Central Islip, NY payable in monthly principal installments of $62,481 including Interest at a rate of 3.9148% maturing on December 1, 2022.	$	9,315,246		$	9,686,211

PPP Loan $2,415,970, maturing on April 21, 2022, with interest accruing at 1% per annum		2,415,970			-

HSBC $6,000,000 Mortgage payable secured by building Buildings and improvements at 355 South Technology Drive, Central Islip, NY payable in monthly principal 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.		2,065,508			2,365,508
Total long-term debt	$	13,796,724		$	12,051,719
Less: Current maturities		(690,667	)		(674,593	)
Long-term debt	$	13,106,057		$	11,377,126

Future maturities of long-term debt as of

December 31, 2020

are as follows:

2021	$	690,667
2022		13,106,057

Total long-term debt	$	13,796,724

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

December 31, 2020

and

December 31, 2019

were approximately

$2.1

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%

(

1.89%

and

3.49%

December 31, 2020

and

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

December 31, 2020

and

December 31, 2019

were approximately

$9.3

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”).

August 5, 2019,

the Company entered into a Mortgage Modification Agreement which replaced the former covenant with a Minimum Liquid Assets (“MLC”) covenant, and on

October 22, 2020,

the Company entered into a Second Mortgage Modification Agreement modifying certain MLC balances. The Company is in compliance with its financial covenant under the mortgage at

December 31, 2020.

April 21, 2020,

the Company entered into a loan agreement (the “Loan Agreement”) with HSBC Bank USA, National Association pursuant to which the Company was granted a loan in the principal amount of

$2,415,970,

pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted by the United States Congress on

March 27, 2020.

The PPP loan, the obligation of which is represented by a note issued by the Company, matures on

April 21, 2022

and bears interest at a rate of

per annum. The note

may

be prepaid by the Company at any time prior to maturity with

prepayment penalties. Under the terms of the PPP, all or a portion of the Loan

may

be forgiven, based upon payments made in the

first

twenty-four

weeks following receipt of the proceeds, related to payroll costs, continue group health care benefits, utilities and mortgage interest on other debt obligations incurred before

February 15, 2020.