6.	LONG-TERM DEBT

Long-term debt consists of the following:

	June 30, 201 8			March 31, 201 8
	(in thousands)
Long-term debt	$	6,520		$	6,678
Less current maturities		(660	)		(655	)
Long-term debt, excluding current maturities		5,860			6,023
Less unamortized debt issuance costs		(224	)		(233	)
Total long-term debt, net of current maturities and unamortized debt issuance costs	$	5,636		$	5,790

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 proceeds of the

2015

Loan were used to pay off a

$500,000

short term note payable that matured on

September 18, 2015,

and to acquire new processing equipment and leasehold improvements at the Company’s Kona, Hawaii facility.

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 (

5.00%

June

30,

2018

) 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

$1,644,000

and

$1,726,000

June 30, 2018

and

March

31,

2018,

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 proceeds of the Loan have been used to acquire new processing equipment and leasehold improvements at the Company’s Kona, Hawaii facility.

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 (

5.00%

June

30,

2018

) 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 balance under this Loan was

$4,596,000

and

$4,648,000

June 30, 2018

and

March

31,

2018,

respectively.

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.

October 6, 2017,

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

$175,000

of financing for equipment. The interest rate on this loan is

4.75%.

The provisions of the Equipment Agreement require the payment of principal and interest until its maturity on

October

31,

2022,

the obligation fully amortizes over

five

(

) years. The balance under this loan was

$149,000

and

$156,000

June 30, 2018

and

March 31, 2018,

respectively.

Capital Leases

The Company has

three

capital leases providing for

$278,000

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

May 2019

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 aggregate balance under these leases was

$131,000

and

$148,000

June

30,

2018

and

March 31, 2018,

respectively.

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

June

30,

2018

are as follows:

Payments Due	(in thousands)
Next 12 Months	$	660
Year 2		684
Year 3		685
Year 4		716
Year 5		398
Thereafter		3,377
Total principal payments	$	6,520