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LINES OF CREDIT

9 Months Ended

Sep. 30, 2021

NOTE 9 – LINES OF CREDIT

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

	September 30, 2021		December 31, 2020
National	$	2,726,522	$	3,540,550
Alpha		1,033,174		1,106,894
Pancretan		481,759		-
National – COVID		425,869		429,240
Total	$	4,667,324	$	5,076,684

The line of credit with National Bank of Greece is renewed annually with current interest rates of 6.00%, 4.35% (“COSME 2” facility) and 4.35% (plus the 6-month Euribor plus any contributions currently in force by law on certain lines of credit), (“COSME 1” facility).

The maximum borrowing allowed for the 6% line of credit was $2,546,940 and $2,690,600 as of September 30, 2021 and December 31, 2020, respectively. The outstanding balance of the facility was $1,699,167 and $2,411,182, as of September 30, 2021 and December 31, 2020, respectively.

The maximum borrowing allowed , for the 4.35% lines of credit, was $1,157,700 and $1,223,000 as of September 30, 2021 and December 31, 2020, respectively. The outstanding balance of the facilities was $1,027,355 and $1,129,368 as of September 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 $1,157,700 and $1,123,000 as of September 30, 2021 and December 31, 2020, respectively. The outstanding balance of the facility was $1,033,174 and $1,106,894, as of September 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 as of September 30, 2021 was $578,850. The outstanding balance of the facility as of September 30, 2021, was $481,759.

Interest expense for the three-month period ended September 30, 2021 and 2020, was $11,656 and $31,559, respectively.

Interest expense for the nine months ended September 30, 2021 and 2020, was $165,245 and $141,979, 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. As of the periods ended September 30, 2021 and December 31, 2020, the Company was in compliance with these ratios and covenants.

The Lines of credit are guaranteed and backed by customer receivable checks and they are not considered to be a direct debt obligation for the Company. They are a type of factoring, where the postponed customer checks are assigned by the Company to the bank, in order to be financed at a pre-agreed rate.

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 was 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 $425,869 and $429,240 at September 30, 2021 and December 31, 2020.

Interest expense for the three and nine months ended September 30, 2021 was $0.