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Note 7 - Financing Arrangements
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Short-term Debt [Text Block]
Note
7
– Financing Arrangements
 
The Company has a revolving credit facility with HSBC Bank, USA, N.A. (“HSBC”) providing up to
$7
million, although the Company has never utilized this facility. This credit facility remains available until
September 1, 2018.
The credit agreement also contains certain financial covenants, all of which the Company was in compliance with at
December 31, 2017.
 
The Company has a loan agreement with HSBC which is secured by a mortgage against our Central Islip facility. The loan is payable in
120
consecutive equal monthly installments of
$25,000
in principal plus interest and a final balloon payment upon maturity in
March 2022.
The balances as of
December 31, 2017
and
December 31, 2016
were approximately
$3.0
million and
$3.3
million respectively. Interest accrues on the Loan, at our option, at the variable rate of LIBOR plus
1.75%
which was
3.3118%
and
2.5610%
at
December 31, 2017
and
2016
respectively.
 
On
October 31, 2017
The Company through its newly formed and wholly-owned indirect subsidiary (CVD MesoScribe Technologies Corporation, a New York corporation) purchased substantially all of the operating assets and business (excluding cash, accounts receivable and other specified excluded assets) of MesoScribe Technologies, Inc., a Delaware corporation.
 
Pursuant to the Asset Purchase Agreement, the purchase price for the assets acquired in the Acquisition was
$800,000.00,
of which
$500,000
was paid on the Closing Date an
d
$300,000
may
be paid to Mesoscribe Technologies Inc. as additional consideration based upon the achievement of certain revenue thresholds and other criteria set forth in the Asset Purchase Agreement with respect to each of the
two
(
2
) consecutive
twelve
(
12
) month measurement periods following the Closing Date. The additional consideration is classified as Acquisition related contingent payments, of which
$100,000
is the current portion.
 
On
November 30, 2017,
we closed on the purchase of the premises located at
555
North Research Place, Central Islip, NY
11722.
The purchase price of the building was
$13,850,000
exclusive of closing costs. The Company
’s newly formed wholly-owned subsidiary,
555
N Research Corporation (the “Assignee”) and the Islip IDA, entered into a Fee and Leasehold Mortgage and Security Agreement (the ”Loan”) with HSBC  in the amount of
$10,387,500,
which was used to finance a portion of the purchase price to acquire the premises located at
555
North Research Place, Central Islip, New York
11722
. The Loan was evidenced by the certain Note, dated
November 30, 2017 (
the “Note”), by and between Assignee and the Bank, and secured by a certain Fee and Leasehold Mortgage and Security Agreement, dated
November 30, 2017,
as well as a collateral Assignment of Leases and Rents.
 
The Loan is payable in
60
consecutive equal monthly installments of
$62,777.60
including interest. The Loan shall bear interest for each Interest Period (as defined in the Note), at the fixed rate of
3.9148%.
The maturity date for the Note is
December 1, 2022.
 
As a condition of the Bank making the Loan, the Company was required to guaranty Assignee
’s obligations under the Loan pursuant that certain Unlimited Guaranty, dated
November 30, 2017 (
the “Guaranty”).