|3 Months Ended|
Sep. 30, 2016
|Debt Disclosure [Abstract]|
Note (3) - Debt: At September 30, 2016, the Company had a revolving line of credit facility (the 2011 Credit Facility) which allowed for borrowings of up to $2,250,000. Borrowings under the 2011 Credit Facility, if any, bore bear interest at 2.50% per annum above the Adjusted LIBOR Market Index Rate. The maturity date under the 2011 Credit Facility was November 1, 2016. The Companys obligations under the 2011 Credit Facility were guaranteed by the Companys subsidiaries and collateralized by substantially all of the assets of the Company and its subsidiaries. The 2011 Credit Facility required the maintenance of certain fixed charge 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 September 30, 2016 and June 30, 2016. No amounts were outstanding under the 2011 Credit Facility at September 30, 2016 or June 30, 2016, nor were there any amounts outstanding under the 2011 Credit Facility at any time during fiscal 2016 or the three months ended September 30, 2016.
Effective October 7, 2016, the 2011 Credit Facility was terminated in connection with the Companys entry into a new $20,000,000 credit agreement, consisting of a maximum $15,000,000 million revolving line of credit and a $5,000,000 term loan. See Note 10, Subsequent Events, for additional information regarding the Companys new credit facility.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef