Notes Payable

12 Months Ended

Dec. 31, 2018

Notes Payable [Abstract]

Notes Payable

Notes payable consist of the following (in thousands):

	December 31,
	2018		2017
Note payable to a Bank, maturing September 2021; with monthly payments of approximately $26 of principal and interest fixed at 3.99%; collateralized by principally all assets of the Company.	$	799	$	1,071
Note payable to a Bank, maturing July 2031; with monthly payments of approximately $11 of principal and interest fixed at 5.29%; collateralized by principally all assets of Smith-Columbia Corporation and guaranteed by Smith-Midland Corporation.		1,169		1,234
Note payable to a Bank, maturing April 2021; with monthly payments of approximately $6.2 of principal and interest at prime at variable rate (5.29% at December 31, 2018 and 2017); collateralized by certain property of the Company.		163		227
Construction loan draw on-line-of-credit for the North Carolina Expansion, which is part of the $4,000 line-of-credit listed below		1,000		—
Installment notes, collateralized by certain machinery and equipment maturing at various dates, primarily through 2021; with monthly payments varying from $0.3 to $4.1 with weighted average interest at 4.7% and 4.2% at December 31, 2018 and 2017, respectively.		1,372		1,001
A revolving line-of-credit evidenced by a note payable to a Bank, with the maximum amount of $4,000, maturing October 1, 2019, with interest only payments and an initial rate of 5.00% adjustable monthly (5.50% at December 31, 2018). 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.		—		—
		4,503		3,533
Less current maturities		1,711		637
	$	2,792	$	2,896

The Company’s note payable, which matures in September 2021, with a balance (in thousands) of $799 at December 31, 2018, is secured by all of the assets of the Company. The commitment letter provided by the bank dated September 18, 2018 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, 2018, the Company was in compliance with all covenants pursuant to the loan agreement, with the increase in the annual capital expenditures limit from $1,500 to $3,500, excluding acquisitions and plant expansions, during the year ended December 31, 2017 and for subsequent years.

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

Year Ending December 31,
2019	$	1,711
2020		737
2021		577
2022		271
2023		216
Thereafter		991
	$	4,503

The construction loan draw on the line-of-credit is expected to be refinanced to long term debt. Financing is expected to be secured in the second quarter of 2019, and at that time the $1,000 will be converted to a long-term note payable.