6.	LONG-TERM DEBT

Long-term debt consists of the following:

	September 30, 201 7			March 31, 201 7
	(in thousands)
Long-term debt	$	6,835		$	7,139
Less current maturities		(626	)		(623	)
Long-term debt, excluding current maturities		6,209			6,516
Less unamortized debt issuance costs		(250	)		(267	)
Total long-term debt, net of current maturities and unamortized debt issuance costs	$	5,959		$	6,249

Term Loans

The Company executed a loan agreement with a lender providing for

$2,500,000

in aggregate credit facilities (the

“2015

Loan”) secured by substantially all the Company’s assets, pursuant to a Term Loan Agreement dated

July

30,

2015

(the

“2015

Loan Agreement”). The

2015

Loan Agreement is evidenced by a promissory note in the amount of

$2,500,000,

the repayment of which is partially guaranteed under the provisions of a United States Department of Agriculture (“USDA”) Rural Development Guarantee program. The provisions of the

2015

Loan Agreement require the payment of principal and interest until its maturity on

September

2022,

the obligation fully amortizes over

seven

(

) years. Interest on the

2015

Loan accrues on the outstanding principal balance at an annual variable rate equal to the published Wall Street Journal prime rate (

4.25%

September

30,

2017

) plus

2.0%

and is adjustable on the

first

day of each calendar quarter and fixed for that quarter. At

time shall the annual interest rate be less than

6.00%.

The

2015

Loan has a prepayment penalty of

for any prepayment made prior to the

first

anniversary of the date of the

2015

Loan Agreement, which penalty is reduced by

each year thereafter until the

fifth

anniversary of such date, after which there is

prepayment penalty. The balance under the

2015

Loan was

$1,890,000

and

$2,049,000

September 30, 2017

and

March

31,

2017,

respectively.

The

2015

Loan includes a

one

-time origination and guaranty fee totaling

$113,900

and an annual renewal fee payable in the amount of

0.50%

of the USDA guaranteed portion of the outstanding principal balance as of

December

of each year, beginning

December

31,

2015.

The USDA has guaranteed

80%

of all amounts owing under the

2015

Loan. The Company is subject to financial covenants and customary affirmative and negative covenants.

The Company executed a loan agreement with a lender providing for

$5,500,000

in aggregate credit facilities (the “Loan”) secured by substantially all the Company’s assets, including a mortgage on the Company's interest in its lease at the National Energy Laboratory of Hawaii Authority, pursuant to a Term Loan Agreement dated

August

14,

2012

(the “Loan Agreement”). The Loan Agreement is evidenced by promissory notes in the amounts of

$2,250,000

and

$3,250,000,

the repayment of which is partially guaranteed under the provisions of a USDA Rural Development Guarantee. The provisions of the Loan required the payment of interest only for the

first

months of the term; thereafter, and until its maturity on

August

14,

2032,

the obligation fully amortizes over

nineteen

(

) years. Interest on the Loan accrues on the outstanding principal balance at an annual variable rate equal to the published Wall Street Journal prime rate (

4.25%

September

30,

2017

) plus

1.0%

and is adjustable on the

first

day of each calendar quarter and fixed for that quarter. At

time shall the annual interest rate be less than

5.50%.

The Loan has a prepayment penalty of

for any prepayment made prior to the

first

anniversary of the date of the Loan Agreement, which penalty is reduced by

each year thereafter until the

fifth

anniversary of such date, after which there is

prepayment penalty. The balance under this Loan was

$4,754,000

and

$4,854,000

September 30, 2017

and

March

31,

2017,

respectively. Proceeds from the Loan were classified as restricted cash until drawn upon to acquire new processing equipment and leasehold improvements.

The Loan includes a

one

-time origination and guaranty fees totaling

$214,500

and an annual renewal fee payable in the amount of

0.25%

of the USDA guaranteed portion of the outstanding principal balance as of

December

of each year, beginning

December

31,

2012.

The USDA has guaranteed

80%

of all amounts owing under the Loan. The Company is subject to financial covenants and customary affirmative and negative covenants.

The Company

’s current ratio of

1.92

and

1.97

as of

March 31, 2017

and

2016,

respectively, fell short of the bank’s requirement of

2.10

however, the Company has received letters from its bank stating that they found the Company to be in compliance with this and all other financial covenants as of

March 31, 2017

and

2016,

and do

not

consider these shortfalls to be a defaults under the Loan Agreements.

October 6, 2017

the Company entered into an Equipment Finance Agreement (the “Equipment Agreement”), which provides up to

$175,000

of financing for equipment with repayment terms of

months. As of

November

2017,

there was

advance of funds or balance outstanding.

Capital Leases

The

Company has

four

capital leases providing for

$364,000

in equipment, secured by the equipment financed. The capital leases mature at various dates between

March 2018

and

March 2021

and are payable in

equal monthly payments, except for

one

which is payable in

equal monthly payments. The interest rates under these capital leases range from

4.18%

12.90%.

The balance under these leases was

$191,000

and

$236,000

September

30,

2017

and

March 31, 2017,

respectively.

Future principal payments under the term loans and capital lease agreements as of

September

30,

2017

are as follows:

Payments Due	(in thousands)
Next 12 Months	$	626
Year 2		640
Year 3		656
Year 4		655
Year 5		688
Thereafter		3,570
Total principal payments	$	6,835