Debt

	September 30		June 30		December 31
	2018		2018		2017

Term loan	$	-	$	2,355,861	$	2,545,421
Revolving line of credit		-		500,000		500,000
		-		2,855,861		3,045,421
Less current portion		-		2,855,861		3,045,421
Total long-term debt	$	-	$	-	$	-

June 30, 2018,

the Company was current on all principal and interest payments due to its lender. In

July 2018,

management voluntarily elected to redeem the cash surrender value (CSV) of the Company’s whole life insurance policy maintained on the life of the Company’s Board of Directors’ Chairman and former Chief Executive Officer. Upon redemption and related receipt of the

$3.07

million CSV proceeds, the Company simultaneously remitted to its lender

$2.86

million of the CSV proceeds to be applied towards the full reduction of its outstanding term loan and revolver loan balances. Following this series of

July 2018

transactions, the balances of the Company’s term loan, revolver loan, and life insurance policy balances were zero.

Effective with a

September 11, 2018

loan amendment, the revolving line of credit’s maximum borrowing amount has been reduced from

$2.0

million to

$750,000.

The revolver’s maturity date remains

April 29, 2019

and the revolver's interest rate continues to be based on the

-day LIBOR plus

2.25%.

As of

September 30, 2018,

there were

outstanding borrowings on the revolving line of credit.

Borrowings under the lending agreement continue to be secured by all tangible and intangible assets of the Company and by a mortgage on the real estate of the Company's headquarters.