Note 9 - Long-term Debt

12 Months Ended

Dec. 31, 2011

Note 9 – Long-term Debt

Long-term debt as of December 31 consists of the following:

	2011	2010
HSBC BANK USA, NA
$2,100,000 5 year term loan payable in monthly installments of $35,000 plus interest on the unpaid principal balance which accrues at a fixed rate of 3.045%. This term loan is secured by $1 million, provided that, so long as no event of default has occurred and is then continuing, HSBC will release $200,000 of the collateral on each anniversary of the closing date.	$1,960,000	$ ---

GENERAL ELECTRIC CAPITAL CORPORATION
$2,700,000 Mortgage payable secured by real property, building and improvements at 1860 Smithtown Avenue, Ronkonkoma, NY payable in monthly installments of $22,285 including interest at 5.67% per annum; pursuant to an installment sale agreement with the Town of Islip Industrial Development Agency; final payment due March 2017	1,211,795	1,404,530

CAPITAL ONE BANK
$805,000 mortgage payable secured by real property, building and improvements in Saugerties, New York; payable in equal monthly installments of $5,903 including interest at 6.2% per annum.	----	752,481

CAPITAL ONE BANK
$1,000,000 mortgage payable secured by real property and building at 979 Marconi Avenue, Ronkonkoma, NY, payable in monthly installments of $7,023 including interest at 5.67% per annum. Pursuant to an installment sale agreement with the Town of Islip Industrial Development Agency.	----	920,621

CAPITAL ONE BANK
$500,000 mortgage payable secured by real property and building at 979 Marconi Avenue, Ronkonkoma, NY, payable in monthly installments of $2,992 including interest at 3.67% per annum, pursuant to an installment sale agreement with the Town of Islip Industrial Development Agency.	----	451,878

CAPITAL ONE BANK
Sixty month installment note, payable in monthly installments of $1,776, including interest at 6.75% per annum; collateralized by certain equipment.	----	3,526

CAPITAL ONE BANK
Sixty month installment note, payable in monthly installments of $2,770, including interest at 7.01% per annum; collateralized by certain equipment.	----	42,354

CAPITAL ONE BANK
Sixty month installment note payable in monthly installments of $6,536 including interest at 5.68% per annum; collateralized by certain equipment	----	193,443
Totals	3,171,795	3,768,833
Less: Current maturities	623,953	372,387
Long-term debt	2,547,842	3,396,446

Future maturities of long-term debt as of December 31, 2011 are as follows:

2012	$	623,953
2013		635,822
2014		648,382
2015		661,673
2016		535,738
Thereafter		66,227
	$	3,171,795

As of December 31, 2011, we are in compliance with the terms of the covenants in both of the HSBC Bank, USA, N.A. and General Electric Capital Corporation loan agreements.