Note 4--

Debt

	March 31		December 31
	2015		2014

Term loan	$	2,943,086	$	3,067,442
Revolving line of credit		500,000		500,000
Obligation for acquisition of technology license, net		680,654		677,248
		4,123,740		4,244,690
Less current maturities		697,423		697,423
Total long-term debt	$	3,426,317	$	3,547,267

Principal maturities of debt at March 31, 2015 are as follows:

Twelve months ending March 31,
2016	$	697,423
2017		3,195,663
2018		230,654
2019		-
2020		-
Thereafter		-
	$	4,123,740

The Company has outstanding borrowings from its primary lender under a revolving line of credit agreement and a term loan agreement (collectively, "Credit Agreement"). As amended, the $3.5 million revolving line of credit agreement accrues interest at a floating interest rate based on the 30-day LIBOR plus 1.85%. As of March 31, 2015, the revolver's interest rate was 2.023% and $3.0 million remains available for additional borrowings under the revolving line of credit.

As amended, the term loan agreement requires monthly term loan payments consisting of principal of $41,452 plus interest with a balloon payment for the outstanding balance due and payable on July 1, 2016. The term loan's interest rate is based on the 30-day LIBOR plus 2.0% and was 2.173% at March 31, 2015.

As amended in 2014 and on March 4, 2015, borrowings under the Credit Agreement are secured by all tangible and intangible assets of the Company and also by a mortgage on the real estate of the Company's headquarters. The amended Credit Agreement restricts the Company from the declaration and cash payment of common stock dividends and the repurchase of company common stock.

A loan covenant under the amended Credit Agreement requires the Company to maintain a fixed charge coverage ratio in which EBITDA adjusted for certain non-cash expenses shall exceed fixed charges by a ratio of 1.0 to 1 at March 31, 2015 and a ratio of 1.15 to 1 for all subsequent quarterly reporting periods. Fixed charges, as defined, include unfinanced capital expenditures, dividends and other distributions, cash taxes paid, and principal and interest due on all debt obligations.

The amended Credit Agreement also includes a loan covenant which requires the Company to maintain net tangible worth of not less than $9.5 million. Net tangible worth is defined as actual stockholders' equity reduced by the sum of net intangible assets, accounts due from employees and distributors, and note receivable due from distributor. At March 31, 2015, the Company was in compliance with its loan covenants.