Long-term debt – The balances remaining as of December 31, consist of the following: 2003  2004 Note payable  to LSC, a major stockholder of the Company (see Note 10), due in equal monthly installments of $208,000 plus interest beginning July 31, 2002, through June 30, 2006. The unsecured note bears interest at LIBOR plus 2% (approximately 4.1% at December 31, 2004) and is subordinated to the interest of the Company’s primary lender.  $ 6,250,000  $ 3,750,000 Term note portion  of $25,000,000 China credit facility due in 2006.  3,000,000  3,000,000 Note payable  to U.S. bank, collateralized by all assets, due in aggregate monthly principal payments of $278,000 plus interest at 6.8% fixed by hedge contract through November 2004.  3,333,000  – Note payable  to U.S. bank, collateralized by all assets, due in aggregate monthly principal payments of $83,000 plus interest at approximately 3.8% at December 31, 2004.  –  4,597,000 12,583,000  11,347,000 Less: Current portion  (5,833,000)  (3,514,000) Long-term debt,  net of current portion  $ 6,750,000  $ 7,833,000 For years ending December 31, 2005 $ 230,000 2006 230,000 2007 230,000 2008 230,000 2009 230,000 Thereafter  1,627,000 2,777,000 Less: Interest  (440,000) Present value of minimum lease payments  2,337,000 Less: Current portion  (165,000) Long-term portion  $2,172,000 2003  2004 Employee compensation and payroll taxes $4,501,000  $ 5,779,000 Equipment purchases  1,875,000  2,012,000 Taxes payable  –  978,000 Sales commissions  686,000  437,000 Refunds to product distributors  334,000  219,000 Other  1,319,000  2,034,000 $8,715,000  $11,459,000 2005 $ 3,514,000 2006 5,250,000 2007 1,000,000 2008 1,000,000 2009 583,000 $11,347,000 Note 6 – Accrued Liabilities Future minimum lease payments under capital lease  agreements are summarized as follows: Note 5 – Capital Lease Obligations The credit facilities contain certain covenants and  restrictions, which, among other matters, require the  maintenance of certain financial ratios and attainment of certain financial results, and prohibit the payment of dividends. The aggregate maturities of long-term debt for future  years ending December 31 are: In July 2001, the Company entered into an interest  rate swap agreement with a bank to hedge its interest  exposure. The interest rate under the swap agreement,  which expired November 30, 2004, was fixed at 6.8% and  based on the notional amount, which was $2,292,000 at  December 31, 2003. At December 31, 2004, property under capital leases  had a cost of $2,785,000, and the related accumulated  depreciation amounted to $557,000. Accrued liabilities at December 31 were: 39