8. BANK LOANS AND NOTES PAYABLE (Tables)

3 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Company's debt

The Company's debt consisted of the following as of September 30, 2012 and June 30, 2012:

	September 30, 2012		June 30, 2012
Bank loans and notes payable-current	$	993,821	$	1,022,826
Bank loans and notes payable-long term		2,802,986		2,915,134
Total	$	3,796,807	$	3,937,960

Bank loans and notes payable

Bank loans and notes payable consisted of the following at September 30, 2012 and June 30, 2012:

	September 30, 2012		June 30, 2012
Note payable to the seller of Tier Electronics LLC payable in annual installments of $450,000 on January 21, 2013 and January 21, 2014.  Interest accrues at a rate of 8% and is payable monthly.  The promissory note is collateralized by the Company’s membership interest in its wholly-owned subsidiary Tier Electronics LLC.  See note  (a) below.	$	900,000	$	900,000
Note payable to Wisconsin Department of Commerce payable in monthly installments of $22,800, including interest at 2%, with the final payment due May 1, 2017; collateralized by equipment purchased with the loan proceeds and substantially all assets of the Company not otherwise collateralized.  The Company is required to maintain and increase a specified number of employees, and the interest rate is increased in certain cases for failure to meet this requirement.		1,217,260		1,279,367
Bank loan payable in fixed monthly payments of $6,800 of principal and interest at a rate of .25% below prime, as defined, subject to a floor of 5% as of June 30, 2012 and 2011 with any principal due at maturity on June 1, 2018; collateralized by the building and land.		708,270		719,528
Note payable in fixed monthly installments of $6,716 of principal and interest at a rate of 5.5% with any principal due at maturity on May 1, 2028; collateralized by the building and land.		757,452		764,981
Bank loan payable in monthly installments of $21,000 of principal and interest at a rate equal to prime, as defined, subject to a floor of 4.25% with any principal due at maturity on December 1, 2013; collateralized by specific equipment.		213,825		274,084
	$	3,796,807	$	3,937,960

(a)   If the federal capital gains  tax rate exceeds 15% and or the State of Wisconsin capital gains tax rate  exceeds 5.425% at any time prior to the payment in full of the unpaid  principal balance and accrued interest on the promissory note, then the  principal amount of the promissory note (retroactive to January 21, 2011) shall  be increased by an amount equal to the product of (a) the aggregate amount  of federal and state capital gain realized by the Seller or Seller’s sole member,  as applicable, in connection with the acquisition, multiplied by (b) the  difference between (i) the combined federal and State of Wisconsin capital  gains tax rate as of the date of calculation, minus (ii) the combined federal and  State of Wisconsin capital gains tax rate of 20.425% as of January 21, 2011.  Any adjustment to the principal amount of the promissory note shall be effected by increasing the amount of the last payment due under the promissory note without affecting the next regularly scheduled payment(s) under the promissory note.  The loan was amended in January 2012 and the initial payment of $450,000 due on January 21, 2012 was deferred and paid in three equal installments of $150,000 on February 21, March 21 and April 7, 2012.  Interest continued to accrue at a rate of 8% and was payable monthly.

Maximum aggregate annual principal payments for fiscal periods

Aggregate annual principal payments for fiscal periods subsequent to September 30, 2012 are as follows:

2013 (nine months)	$	881,427
2014		815,961
2015		346,444
2016		356,304
2017		342,658
2018 and thereafter		1,054,013
	$	3,796,807