NOTES PAYABLE

Notes payable consist of the following:



	December 31,
	2014		2013
Note payable to a Bank, maturing June 2021; with monthly payments of approximately $25,000 of principal and interest fixed at 3.99%; collateralized by principally all assets of the Company.	$	1,814,825	$	2,043,832
Note payable to a Bank, maturing April 2021; with monthly payments of approximately $6,200 of principal and interest at prime at variable rate (5.29% at December 31, 2013); collateralized by certain property of the Company.	398,964		445,882
Installment notes, collateralized by certain machinery and equipment maturing at various dates, primarily through 2016, with interest at 1.0% through 6.7%.	380,396		419,299

Line of credit evidenced by a note payable to a Bank, with the maximum amount of $2,000,000, maturing September 12, 2015, with interest only payments and an initial rate of 4.49% adjustable monthly. The loan is collateralized by a first lien position on the Company's accounts receivable and inventory and a second lien position on all other business assets.	—		—

	2,594,185		2,909,013
Less current maturities	363,821		364,204

	$	2,230,364	$	2,544,809

The Company’s note payable, with a balance of $1,814,825 at December 31, 2014, is secured by all of the assets of the Company. The loan agreement includes certain restrictive covenants, which require the Company to maintain minimum levels of tangible net worth, places limits on annual capital expenditures and the payment of cash dividends. At December 31, 2014, the Company was in compliance with all covenants pursuant to the loan agreement as amended except for the payment of a cash dividend on December 30, 2014, for which the Company received approval prior to payment.

The aggregate amounts of notes payable maturing in each of the next five years and thereafter are as follows:



Year Ending December 31,

2015	$	363,821
2016	368,270
2017	384,480
2018	390,342
2019	362,751
Thereafter	724,521

	$	2,594,185