NOTES PAYABLE

Notes payable consist of the following:



	December 31,
	2015		2014
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.	$	1,575,951	$	1,814,825

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, 2015); collateralized by certain property of the Company.	344,717		398,964

Installment notes, collateralized by certain machinery and equipment maturing at various dates, primarily through 2016, with interest at 1.0% through 6.7%.	239,702		380,396

The revolving line-of-credit evidenced by a note payable to a Bank, with the maximum amount of $2,000,000, maturing September 12, 2016, with interest only payments and an initial rate of 4.49% adjustable monthly. The line-of-credit 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.	352,022		—

	2,512,392		2,594,185
Less current maturities	435,717		363,821

	$	2,076,675	$	2,230,364

The Company’s note payable, which matures in June 2021, with a balance of $1,575,951 at December 31, 2015, is secured by all of the assets of the Company. The commitment letter provided by the bank dated September 8, 2015 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, 2015, the Company was in compliance with all covenants pursuant to the loan agreement as amended except for the purchase of assets in excess of $1,000,000 for which a waiver by the bank was received.

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



Year Ending December 31,

2016	$	435,716
2017	455,177
2018	458,771
2019	433,445
2020	445,905
Thereafter	283,378

	$	2,512,392