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LINES OF CREDIT

6 Months Ended

Jun. 30, 2021

NOTE 9 – LINES OF CREDIT

A summary of the Company’s lines of credit as of June 30, 2021 and December 31, 2020 is presented below:

	June 30, 2021		December 31, 2020
National	$	3,093,644	$	3,540,550
Alpha		1,019,368		1,106,894
Pancretan		532,191		-
National - COVID		393,709		429,240
Total	$	5,038,912	$	5,076,684

The line of credit with National Bank of Greece is being renewed annually with current interest rates of 6.00%, 4.35% (“COSME 2”) and 4.35% (plus the 6-month Euribor plus any contributions currently in force by law on certain lines of credit), (“COSME 1”). The maximum borrowing allowed for the 6% line of credit was $2,606,560 and $2,690,600 as of June 30, 2021 and December 31, 2020, respectively for the 6% line of credit. The outstanding balance was $2,103,897 and $2,411,182 as of June 30, 2021 and December 31, 2020, respectively.

The maximum borrowing allowed was $1,184,800 and $1,223,000 as of June 30, 2021 and December 31, 2020, respectively, for the 4.35% lines of credit. The outstanding balance was $989,746 and $1,129,368 as of June 30, 2021 and December 31, 2020, respectively.

The line of credit with Alpha Bank of Greece is renewed annually with a current interest rate of 6.00%. The maximum borrowing allowed was $1,184,800 and $1,123,000 as of June 30, 2021 and December 31, 2020, respectively. The outstanding balance was $1,019,368 and $1,106,894 as of June 30, 2021 and December 31, 2020, respectively.

The Company entered into a line of credit with Pancreta bank on February 23,2021. The line of credit is renewed annually with a current interest rate of 6.10%. The maximum borrowing allowed was $592,400 at June 30, 2021. The outstanding balance was $532,191 as of June 30, 2021.

Interest expense for the three month period ended June 30, 2021 and 2020, was $137,088.11 and $92,747, respectively.

Interest expense for the six months ended June 30, 2021 and 2020, was $153,589 and $110,420, respectively.

Under the agreements, the Company is required to maintain certain financial ratios and covenants. These lines of credit were assumed in the Company’s acquisition of Cosmofarm. During the three and six months ended June 30, 2021 and December 31, 2020, the Company was in compliance with these ratios and covenants.

COVID-19 Government Funding

On June 23, 2020, the Company’s subsidiary, Cosmofarm, entered into an agreement with the “National Bank of Greece SA” (the “Bank”) to borrow a maximum of €500,000 ($611,500) under a proposed plan which will operate the same as the line of credit above. The proposed plan has a maturity date of sixty (60) months from the date of the first disbursement, which includes a grace period of nine months. The total amount of the initial proceeds were paid in 3 equal monthly installments. The line of credit is interest bearing from the date of receipt and is payable every three (3) months at an interest rate of 2.7%. The outstanding balance was $393,709 and $429,240 at June 30, 2021 and December 31, 2020.

Interest expense for the three and six months ended June 30, 2021 was $0.