8. BANK LOANS AND NOTES PAYABLE

3 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

BANK LOANS AND NOTES PAYABLE

The Company’s debt consisted of the following as of September 30, 2014 and June 30, 2014:

	September 30, 2014		June 30, 2014
Bank loans and notes payable-current	$	353,600	$	351,142
Bank loans and notes payable-long term		1,956,011		2,045,127
Total	$	2,309,611	$	2,396,269

Bank loans and notes payable consisted of the following as of:

	September 30, 2014		June 30, 2014
Note payable to Wisconsin Econcomic Development Corporation payable in monthly installments of $23,685, including interest at 2%, with the final payment due May 1, 2018; 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. See  note (a) below.	$	1,004,019	$	1,069,793
Bank loan payable in fixed monthly payments of $6,800 of principal and interest at a rate of 0.25% below prime, as defined, subject to a floor of 5% with any principal due at maturity on June 1, 2018; collateralized by the building and land.		612,289		624,760
Note payable in fixed monthly installments of $6,610 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.		693,303		701,716
	$	2,309,611	$	2,396,269

(a)   As of April 2013, the Wisconsin Economic Development Corporation granted the Company a 12 month deferral of the required installment payments of $22,800.  On March 1, 2014, fifty equal monthly installments of $23,685 commenced through April 1, 2018 with the final installment due on May 1, 2018.

Maximum aggregate annual principal payments for fiscal periods subsequent to September 30, 2014 are as follows:

2015	$	264,305
2016		361,051
2017		371,392
2018		358,373
2019		105,823
2020 and thereafter		848,667
	$	2,309,611