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LINES OF CREDIT

3 Months Ended

Mar. 31, 2023

NOTE 10 – LINES OF CREDIT

A summary of the Company’s lines of credit as of March 31, 2023 and December 31, 2022 is presented below:

	March 31, 2023		December 31, 2022
National	$	2,383,647	$	3,103,605
Alpha		803,142		991,492
Pancreta		1,093,420		1,232,128
EGF		430,105		431,512
Ending balance	$	4,710,314	$	5,758,737

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 $3,234,420 and $3,182,655 as of March 31, 2023 and December 31, 2022, respectively. The outstanding balance of the facility was $1,471,908 and $2,118,952, as of March 31, 2023 and December 31, 2022, respectively.

The maximum borrowing allowed for the COSME 1 and COSME 2 lines of credit, was $1,087,200 and $1,069,800 as of March 31, 2023 and December 31, 2022, respectively. The outstanding balance of the facilities was $911,739 and $984,653 as of March 31, 2023 and December 31, 2022, 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 $1,087,200 and $1,069,800 as of March 31, 2023 and December 31, 2022, respectively. The outstanding balance of the facility was $803,142 and $991,429, as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022 was $1,511,208 and $1,487,022, respectively. The outstanding balance of the facility as of March 31, 2023 and December 31, 2022 was $1,093,420 and $1,232,128, respectively.

The Company entered into a line of credit with EGF on June 6, 2022. The line of credit is renewed annually with a current interest rate of 4.49%. The maximum borrowing allowed as of March 31, 2023 and December 31, 2022 was $434,880 and $427,920, respectively. The outstanding balance of the facility as of March 31, 2023 and December 31, 2022 was $430,105 and $431,512, respectively.

Under the agreements, the Company is required to maintain certain financial ratios and covenants. As of March 31, 2023 and December 31, 2022, the Company was in compliance with these ratios and covenants.

The above lines of credit are guaranteed and backed by customer receivable checks. 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.

Interest expense for the three-months ended March 31, 2023 and 2022, was $19,435 and $17,175, respectively.