(

)

Debt

Debt outstanding consists of the following (in thousands):

	July 2,			December 31,
	2017			2016
	(Unaudited)
Current:
Current portion of capital lease obligation	$	238		$	208
Long Term:
Note payable – related party	$	6,500		$	6,500
Capital lease obligation		2,828			2,950
Less unamortized debt issuance and modification costs		(95	)		(125	)
Long term debt net of unamortized debt costs	$	9,233		$	9,325

Note Payable – Related Party

The Company has received the benefit of cash infusions from GFCM in the form of secured promissory note obligations totaling

6,500,000

in principal as of

July

2017

and

December

31,

2016.

GFCM is an entity controlled by the Company’s chairman, president and chief executive officer, Jeffrey T. Gill and

one

of our directors, R. Scott Gill. GFCM, Jeffrey T. Gill and R. Scott Gill are significant beneficial stockholders of the Company. The promissory note bears interest at a rate of

8.0%

per year, payable quarterly, and the principal is due on

January

30,

2019.

Obligations under the promissory note are guaranteed by all of the U.S. subsidiaries and are secured by a

first

priority lien on certain domestic assets of the Company.

Capital Lease Obligation

March 9, 2016,

the Company completed the sale of its

-acre Toluca property for

215,000,000

Mexican Pesos, or approximately

$12,182,000

in U.S. dollars. Simultaneously, the Company entered into a

ten

-year lease of the

acres and buildings currently occupied by the Company and needed for its ongoing business in Toluca (see Note

). As a result of the Toluca Sale-Leaseback, the Company has a capital lease obligation of

$3,066,000

for the building as of

July

2017.