Annual report pursuant to Section 13 and 15(d)

Credit Agreement and Term Loan

v3.2.0.727
Credit Agreement and Term Loan
12 Months Ended
Jun. 30, 2015
Credit Agreement and Term Loan [Abstract]  
Credit Agreement and Term Loan
7.   Credit
      Agreement and
      Term Loan
The Company is a party to a bank loan agreement which provides the Company with a revolving credit facility of $2,250,000.  Borrowings under the revolving credit facility bear interest at 2.50% per annum above the Adjusted LIBOR Market Index Rate, are guaranteed by all of the Company's subsidiaries and are collateralized by substantially all of the Company's and its subsidiaries' assets.  The revolving credit facility matures November 1, 2015.  During fiscal 2015 and fiscal 2014, there were no borrowings, letters of credit or foreign exchange contracts outstanding under the line of credit. The loan agreement requires maintenance of certain debt service coverage and leverage ratios and contains other restrictive covenants, including limitations on the extent to which the Company and its subsidiaries may 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 June 30, 2015 and 2014.