Note 4—

Debt

	June 30		December 31
	2015		2014

Term loan	$	2,818,731	$	3,067,442
Revolving line of credit		500,000		500,000
Notes payable		438,618		-
Obligation for acquisition of technology license, net		684,114		677,248
		4,441,463		4,244,690
Less current portion		3,794,019		697,423
Total long-term debt	$	647,444	$	3,547,267

Estimated maturities of debt at June 30, 2015 are as follows:

Twelve months ending June 30,
2016	$	3,794,019
2017		413,329
2018		234,115
	$	4,441,463

The Company has outstanding borrowings from its primary lender under a revolving line of credit agreement and a term loan agreement (collectively, "Credit Agreement") which expire July 1, 2016. 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 June 30, 2015, the revolver's interest rate was 2.033%.

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 2.183% at June 30, 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 1.15 to 1 at June 30, 2015 and 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 June 30, 2015, the Company's fixed charge coverage ratio was less than the loan covenant's minimum ratio of 1.15 to 1. The Company's primary lender has verbally informed the Company that additional borrowings under the revolving line of credit are suspended pending further analysis. Company management is presently in discussions with the primary lender to obtain a waiver for the Company's non-compliance with the fixed charge coverage ratio for the June 30, 2015 reporting period; however, the Company cannot provide assurances that it will obtain a waiver for its June 30, 2015 non-compliance, nor can the Company provide any assurance that it could obtain waivers in the future, if deemed necessary. As a result, based upon the Company's fixed charge ratio's non-compliance with the loan covenant and the Credit Agreement's requirement that the outstanding term loan and revolver balances are due for repayment to the Company's primary lender on July 1, 2016, the Company has presented the June 30, 2015 term loan and revolver balances as current liabilities in the June 30, 2015 condensed consolidated balance sheets.

Company management believes that the Company's cash on hand and its ability to borrow a significant portion of the cash surrender value of the Company's key-man life insurance policy will be sufficient to meet the Company's working capital requirements and debt service requirements for the next twelve months.

A description of the notes payable is presented in Note 5 — Long-Term Incentive Compensation Plan.