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LINES OF CREDIT

6 Months Ended

Jun. 30, 2023

NOTE 10 – LINES OF CREDIT

A summary of the Company’s lines of credit as of June 30, 2023 and December 31, 2022 is presented below:

	June 30, 2023		December 31, 2022
National	$	3,196,612	$	3,103,605
Alpha		813,513		991,492
Pancreta		264,011		1,232,128
EGF		451,800		431,512
Ending balance	$	4,725,936	$	5,758,737

The Company has three lines of credit with the National Bank of Greece, which are renewed annually. The three lines have interest rates of 6.00% (the "National Bank LOC"), 4.35% (the "COSME 2 Facility"), and 4.35% plus the six-month Euribor rate and any contributions currently in force by law on certain lines of credit (the "COSME 1 Facility").

The maximum borrowing allowed for the National Bank LOC was $3,248,700 and $3,182,655 as of June 30, 2023 and December 31, 2022, respectively. The outstanding balance of the facility was $2,396,249 and $2,118,952, as of June 30, 2023 and December 31, 2022, respectively.

The cumulative maximum borrowing allowed for the COSME 1 Facility and COSME 2 Facility (collectively, the "Facilities") was $1,092,000 and $1,069,800 as of June 30, 2023 and December 31, 2022, respectively. The outstanding balance of the Facilities was $926,718 and $984,653 as of June 30, 2023 and December 31, 2022, respectively.

The Company maintains a line of credit with Alpha Bank of Greece ("Alpha LOC"), which is renewed annually and has a current interest rate of 6.00%. The maximum borrowing allowed was $1,092,000 and $1,069,800 as of June 30, 2023 and December 31, 2022, respectively. The outstanding balance of the Alpha LOC was $813,513 and $991,429, as of June 30, 2023 and December 31, 2022, respectively.

The Company holds a line of credit with Pancreta Bank ("Pancreta LOC"), which is renewed annually and has a current interest rate of 6.10%. The maximum borrowing allowed as of June 30, 2023 and December 31, 2022 was $1,517,880 and $1,487,022, respectively. The outstanding balance of the Pancreta LOC as of June 30, 2023 and December 31, 2022 was $264,011 and $1,232,128, respectively.

The Company maintains a line of credit with EGF ("EGF LOC"), which is renewed annually and has a current interest rate of 4.49%. The maximum borrowing allowed as of June 30, 2023 and December 31, 2022 was $436,800 and $427,920, respectively. The outstanding balance of the EGF LOC as of June 30, 2023 and December 31, 2022 was $451,800 and $431,512, respectively.

Under the aforementioned line of credit agreements, the Company is required to maintain certain financial ratios and covenants. As of June 30, 2023 and December 31, 2022, the Company was in compliance with these ratios and covenants.

All lines of credit are guaranteed by customer receivable checks, which are a type of factoring in which postponed customer checks are assigned by the Company to the bank, in order to be financed at an agreed upon rate.

Interest expense on the Company's outstanding lines of credit balances was $147,683 and $116,612 for the three month periods ended June 30, 2023 and 2022, respectively, and $167,118 and $133,786 for the six month periods ended June 30, 2023 and 2022, respectively.