Quarterly report pursuant to Section 13 or 15(d)

Revolving Credit Line

v2.4.0.6
Revolving Credit Line
6 Months Ended
Dec. 31, 2011
Revolving Credit Line  
Revolving Credit Line

Note (4) – Revolving Credit Line: The Company’s original $2,250,000 revolving line of credit facility expired on October 31, 2011. Due to a change in ownership at the Company’s former lender as a result of the acquisition of the former lender by a new lender, a new line of credit facility was entered into on November 16, 2011. The new credit facility provides a revolving line of credit that entitles the Company to borrow, from time to time, up to $2,250,000, including a $1,000,000 standby letter of credit subfacility for the purchase of inventory and a $250,000 foreign exchange contract subfacility. The Company’s obligations under the new facility are guaranteed by the Company’s subsidiaries and collateralized by substantially all of the Company’s assets. No amounts were outstanding under either facility at December 31, 2011 or June 30, 2011, nor were there any amounts outstanding at any time during fiscal 2011 or the first six months of fiscal 2012. The new facility requires maintenance of certain debt service coverage and leverage ratios and contained other restrictive covenants, including limitations on the extent to which the Company and its subsidiaries could incur additional indebtedness, pay dividends, guarantee indebtedness of others, grant liens, sell assets and make investments. The Company was in compliance with these covenants at December 31, 2011, December 31, 2010 and June 30, 2011.